Crypto Hedge Fund Scalar Capital Raises $12 Million From Marc Andreessen and Chris Dixon
Scalar Capital, a new cryptocurrency hedge fund based out of San Fransico, has reportedly raised $12 million from prominent investors including Marc Andreessen, Chris Dixon, Bain Capital Ventures and Coinbase co-founders Brian Armstrong and Fred Ehrsam.
The new firm was founded by two Coinbase alumni, Linda Xie and Jordan Clifford. During their times at Coinbase, Xie was involved in compliance to combat bitcoin fraud while Clifford was a growth engineer helping the company recruit new users.
According to a report by Forbes, Scalar currently owns about 20 cryptocurrencies and plans to hold each of their crypto assets for three to five years.
Interestingly, Scalar reveals that it is heavily investing in both privacy coins, including Monero (XMR), Zcash (ZEC) and MobileCoin. They are also actively investing in scaling platforms that outperform Ethereum (ETH), but Scalar explicitly states it does not own EOS (EOS) due to what they believe is over-centralization. Their current hypothesis is that three to five smart-contract platforms can exist within the market.
Xie noted that Scalar does look to participate in ICOs, and believes that the right sort of pre-sale discount makes for an attractive investment opportunity.
When you offer very high discounts, you attract the type investors that want to flip your coin. I always discourage teams from having really high discounts.
Scalar raised an additional $8 million back in January via an equity financing round, bringing up their total assets under management to around $20 million.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.