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The trick to being a great venture capitalist is being non-consensus and right. Multicoin Capital is a perfect example. In Part 2 of our trilogy, we explore how the fund reasons from first principles and remains disciplined.
You can listen to an audio version of The Generalist on Spotify or Apple Podcasts.
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Actionable insights
If you only have a couple of minutes to spare, here’s what investors, operators, and founders should know about how Multicoin Capital finds and makes its investments.
- Multicoin is thesis-driven. The firm spends considerable effort researching relevant markets and trends to determine which approach is likeliest to win. The majority of Multicoin’s investments have arisen through this process.
- Investments must be “first-order correct.” Multicoin’s founders Kyle Samani and Tushar Jain pride themselves on thinking from first principles. They expect every investment to fundamentally make sense. This might sound logical but is often at odds with speculative industries like crypto.
- Debate helps hone ideas. Multicoin’s investment committee meetings can be fierce, with employees passionately arguing different perspectives. The goal is to surface blind spots and ensure the creation of an “idea meritocracy.”
- Win through rigor. Multicoin’s team can be intense participants in a fundraising meeting by their own account. Above all, they push founders on how a given market might develop. When it comes time to secure allocation in a deal, that same intensity can prove an asset. Entrepreneurs want someone at the table that improves their thinking.