Chapter One, a Los Angeles-based firm that recently announced a $40 million crypto fund, is looking for ways to stand out in the crowded crypto venture capital world. The latest development is called Chapter One Studio, a six-month incubation program that will provide three crypto startups with millions of dollars worth of checks and internal guidance on how to realize their vision.
The company, led by former Tinder product chief Jeff Morris Jr., has moved from a more general vertical interest to an obsession with Web3 in recent months as early betting on crypto startups like Dapper and Compound Finance began. With the adoption of Web3 in Chapter 1, there is a widespread trend towards small funds managed by crypto operators. The company has tried to use its design-driven approach to carve out a niche among the many companies that are increasingly using tech talent to chase down cryptocurrency founders.
“While there are many funds that are involved in things like governance, liquidity, or market building, there has not been a single fund that has focused solely on the usability and accessibility of cryptocurrencies,” Morris Jr. said.
His new studio initiative is a big part of this new framing. Morris Jr. says one of the goals of the program is to give small teams the ability to find a product that fits the market without worrying about the stress of fundraising. Founders receive $1 million investment for 15% of their companies’ shares. Notably, the program only accepts three commands for this first batch.
The six-month program begins in April after applications are accepted for the next month or so. Startups have the option to operate from Chapter One’s Los Angeles office, but the company says it expects interest from remote companies.
Chapter One executives say they are accepting candidates from the Web3 ecosystem, but have outlined some specific areas they are particularly interested in as a company, including identity, consumer applications, and more. The portfolio includes interoperability-focused products and wallets. Infrastructure for developers.
The company has already supported several players in these areas, including Moonpay, Syndicate, The Graph and Dharma, which were recently acquired by OpenSee.
Shaped like the famous Y Combinator balloons, competing programs tried their best to stand out and find a way to overcome organizational dominance. For its part, Chapter One is deliberately positioning itself as an incubator rather than an accelerator to appeal to a different type of candidate, but executives are also getting to know the benefits it can get at YC. Program.
“It will be a six-month period where we basically give everything we have to companies,” said Menelaus Mazakaris of Chapter One. “We designed this program with one founder in mind. If you are a founder, would you like to go through a group of 400 people where you have very easy contact with a real organization helping to get started programming? Here we are really trying to build generating companies, working with them for half a year, and then maintaining close contact. ,