CVP NoLimit Fund I Invests into Crypto Winter Through Best Practices
No Limit Holdings (NLH) and ClearVue Partners (CVP) remain optimistic in the face of a steep decline in investor sentiment throughout the year. Our fund’s leadership team believes that our first fund, launched in July 2022, is uniquely positioned to optimize returns for investors in this market.
1) Based on experience across multiple domains, market crises and geographies, including LTCM, the dotcom bubble, global financial crisis, and prior crypto cycles, we have high conviction in our ability to identify mission-driven founders with value-creating projects.
2) Our modest fund size with large GP commit means that we are highly incentivized to deliver returns on the fund rather than relying on management fees. We are essentially underwriting our own capital to risk-adjusted returns.
3) We are focused on the fundamentals. Blockchain as a disruptive, value-creating technology has not changed. We invest in businesses we understand and teams that can execute.
4) We liked valuation trends in August, so we like them even better now. This is the time to lean in.
5) We understand the risks, and we want our investors to understand them too. We maintain an open dialogue and are accessible and responsive to questions and concerns.
6) We remain focused on portfolio risk management. We prefer multi-chain projects to mitigate risk and increase user inclusion. We self-custody crypto assets with multi-sig solutions and minimize exposure to centralized entities when adjusting asset allocation.
It’s always good to remind ourselves and our investors why we love this asset class:
1) Unlike traditional sectors, there is no safety net for irresponsible decisions, overextended businesses and leveraged assets in blockchain. This paves the way for economic Darwinism that will inevitably evolve and outcompete faster.
2) Governance continues to be point of failure for many organizations, and behind all the narratives, hidden agendas, and talking heads there is simply a better way to do things. We’re investing in these solutions.
3) Decentralization is an overused term and transparency is an underused term in crypto. A further degree of decentralization can usually be helpful, but more transparency is ALWAYS value-creating.
Through its first 4 months, CVP NoLimit Fund I has deployed capital into projects across Asia, Europe and North America. The investment team continues to review value-creating projects from around the world and is actively investing into seed and strategic rounds with check sizes ranging from $250k to $3 million. Current investments include Ambrus Studio, Binance.US, Blockless, Connect3, Connext, Hogwarts Labs, IQ Protocol, Mento, Mysten Labs, NetZero, Shrapnel, Supra Oracles, and Vibe.