Reverie Launches $20 Million Fund to Invest in Pre-Seed and Seed-Stage Crypto Companies

Introduction

After a couple of years of dabbling in angel investments, crypto advisory firm Reverie is now bringing a bigger checkbook to bear. The firm is launching a flagship $20 million fund to invest in pre-seed and seed-stage crypto companies, its co-founder Larry Sukernik exclusively told TechCrunch.

Investment Focus

• The fund has previously made smaller investments in about 40 companies, including Osmosis, Sovereign Labs, and Orca.
• Reverie has also advised projects like Compound and dYdX.
• The firm is currently interested in decentralized social media and security.

Building Products People Want

Reverie wants to favor companies that are building products that are not speculative in nature. The firm believes that successful companies start with building products people want, rather than focusing solely on technical research.

Sukernik thinks it’s better to focus on building sustainable companies or protocols, rather than using speculation as an onboarding tool into crypto.

Strategic Fund Size

The fund was strategically set to $20 million because Reverie wanted to start small. Sukernik believes that having more money than there are startups is not necessary, and the $20 million is enough to prove the thesis that a hands-on investor can make generational businesses.

Hands-On Approach

Reverie’s co-founders, Larry Sukernik and Derek Hsue, were investors at Digital Currency Group and Blockchain Capital, respectively, before starting Reverie. They wanted to have a more hands-on role in helping founders build companies.

Many crypto investors are “just money guys” and lack recent experience running companies, which is why Reverie wanted to take a different approach.

Conclusion

Reverie’s long-term goal is to always be investing in early-stage founders and be their long-term partners. The future of Reverie remains to be seen.