This installment of The Pomp Letter is free for everyone. I send this email to our investors daily. If you would also like to receive it every morning, join the 50,000 other investors today. To investors, This morning BlockFi announced that they have raised a $50M Series C round of funding. The investment round was led by my partners and I at Morgan Creek Digital, alongside an amazing list of co-investors like Valar Ventures, CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, Purple Arch Ventures, Kenetic Capital, HashKey, Michael Antonov, NBA player Matthew Dellavedova and two prestigious university endowments.
Obviously a great investment on Morgan Creek Digital’s behalf although I have a lot of criticism regarding BlockFi’s business model that one post here won’t suffice.
Any outsider that looks at it will get ponzi-scheme vibes as it looks very unsustainable. Anyone who lends money isn’t in control of their private key which goes against the concept of cryptocurrencies, it’s not DECENTRALISED finance; it’s centralised.
Nevertheless, good luck and hopefully with your sway by joining the board of directors you can encourage them to go the decentralised route and challenge most concerns potential investors have about providing liquidity to the current platform.
That's pretty fantastic growth. It also looks like almost 10% of AUM: $120 million ARR / $1.5 billon. Compare to Betterment at 0.25% of AUM. What allows for such different revenue generation?
Obviously a great investment on Morgan Creek Digital’s behalf although I have a lot of criticism regarding BlockFi’s business model that one post here won’t suffice.
Any outsider that looks at it will get ponzi-scheme vibes as it looks very unsustainable. Anyone who lends money isn’t in control of their private key which goes against the concept of cryptocurrencies, it’s not DECENTRALISED finance; it’s centralised.
Nevertheless, good luck and hopefully with your sway by joining the board of directors you can encourage them to go the decentralised route and challenge most concerns potential investors have about providing liquidity to the current platform.
That's pretty fantastic growth. It also looks like almost 10% of AUM: $120 million ARR / $1.5 billon. Compare to Betterment at 0.25% of AUM. What allows for such different revenue generation?