In this content, Ashton Addison from Block West Capital interviews Tony Chang, General Partner at Foresight Ventures. Tony shares his background in web 2 and his introduction to crypto in 2018. He talks about his experience at a hedge fund and the challenges they faced in investing in early-stage crypto projects. Tony then discusses his role at Foresight Ventures, where he focuses on web 3 investing and early-stage projects. He mentions the growing conviction in the industry and the importance of NFTs in the next cycle. Tony also comments on the decrease in the number of projects raising funding, but the improved quality of founders and their long-term commitment.
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I’m Ashton Addison from Block West Capital
For investment pitch media and today on the Crypto Coin Show
Tony Chang, General partner at Foresight Ventures
Tony welcome to the show and thank you for taking the time
Yeah, thank you Ashton for having me here. You’re very welcome on the show.
Getting into Blockchain and Finance
Before we dive into Foresight Ventures, let’s hear a little bit about yourself and your journey into blockchain and finance.
I started my career in consulting with a more traditional web 2 background. I joined Sequoia Capital China in 2018, which was when I first started getting into crypto. I focused on fintech investing and SaaS investing during my time there. I dabbled a bit in blockchain, but given the regulatory situation in China at the time, we didn’t spend too much time in the market. Unfortunately, the market was not favorable in 2018 and 2019, so we didn’t focus much on web 3.
However, I dove right back into web 3 in 2021 and have been following the space since 2018. I invest in and analyze a lot of early-stage projects. In 2021, I was at a hedge fund called 3G Capital that wanted to gain exposure to crypto. However, they were more accustomed to larger checks and struggled with investing in early-stage seed projects. After that, I joined foresight, where I cover web 3 investing and work with a lot of early-stage projects.
Focusing on Web 3 Investments
Ashton acknowledges the exciting growth of web three companies during the bear market of 2018-19 and asks Tony if he plans to stick to a web 3 focus for the next run.
Tony explains that in 2018, the conviction levels for institutional funds and himself were not high enough to see the potential of blockchain applications beyond payments. However, the rise of DeFi in 2021 showcased new utilities and functionalities. Tony believes that in the next cycle, NFTs will play a significant role in the industry, and conviction levels for institutions and traditional web 2 investors are much higher now.
Tony mentions that Foresight is focused on crypto and actively investing and incubating companies. The conviction in the space, despite market fluctuations, is driving their involvement. The developer activity and the number of people moving into the space are positive signs, and Foresight plans to continue investing in web 3.
Quality Deal Flow in a Downtrend Market
Ashton asks Tony about deal flow and whether there has been a reduction in quality deal flow throughout the downtrend market.
Tony notes that there is a decrease in the number of projects raising funding compared to a year ago, but the quality of builders has improved significantly. Founders now have more conviction and long-term vision, unlike before where everyone was trying to make quick gains. Early-stage valuations have not gone down significantly, making it a concern for Foresight. Tony explains that during bear markets, getting into investment rounds at lower valuations is crucial to make significant returns when the market turns bullish again.
Overall, Foresight is seeing less deal flow but is impressed with the quality of builders who are focused on building real utility leveraging blockchain.
Conclusion
Tony and Ashton wrap up the discussion, acknowledging the exciting potential of the crypto market in the coming years. Tony expresses his optimism for web 3 investments and the positive signs in the industry despite market fluctuations. Foresight Ventures remains committed to investing in early-stage projects and supporting portfolio companies.
