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Expanding Praxis of Digital Economy with Purposeful Investing: Interview with Jack Yi, Founder at LD Capital

By Marcus Patel | BitNews | 11 Aug 2022


With an astounding speed, the post-Covid world is making proactive steps to embrace the disruptive Industry 4.0 paradigm. While placing the key emphasis on the upgrade of technology and ubiquitous digitalization, it builds up its foundation on essential elements of interconnectivity, lightning-speed data exchange and security of personal data. It is true to say that all those principles already achieved realization within the blockchain and its by-product, cryptocurrency. The big investor involvement is a good indicator that the digitalization race is underway within traditional industries: such, Barclays has recently secured a stake in a crypto-firm Copper (which counts a prominent figure, former Chancellor Philip Hammond, among the firm’s advisors), while BNP Paribas is said to be eyeing the partnership with a digital asset custody service. As the process of restructuring the world corrupted by pandemics is rolling on, crypto investments may soon account for the colossal share of all investments on the market.

At this stage, VC became the central stage where the battle for the best digital projects is unfolding. Take, for example, LD Capital: an industry-leading crypto and blockchain fund specializing in both primary and secondary markets, it has successfully embraced the latest technology trends alongside the major crypto investments. With over 300 successful projects throughout 6 years of existence, it managed to secure success in the market through its strategy aimed at long-term value and ecological investment. As of now, LD Capital’s vision is centred on hitting the benchmark of 500 projects, which would enable the firm to become a global leading investor with over US$100 billion in crypto assets under management. This will eventually assist with the fund’s mission of creating a positive impact and sustainable value all around the globe. By successfully performing on frontiers of investing in tokens and crypto-based projects, LD Capital has also asserted itself as a global strategic partner for media and exchange operators across 3 continents: US, EU and Asia, while also being a sponsor of Hackathon and a top-notch post-investment service. The growing involvement in NFT and Metaverse promises to take LD Capital into a new decade of innovation, thus becoming a successful proponent of the growth of an all-immersive digital ecosystem under the umbrella of Industry 4.0.

Being captivated by LD Capital’s potential to transform the economy, I reached out to Jack Yi, Founder at LD Capital, to speak about how LD Capital envisages the future and its role within it.

Hi Jack, please tell me more about yourself and your team?

I grew up in the countryside and I have longed to move to a big city since I was a child. I went to college and started a business in Shanghai. From being cheated, to earning money for the first time in business, to traditional investment, those are not what I wanted until I met blockchain which gives me a weapon, and sustains me.

I first learned about Bitcoin in 2016. Then, I invested one-third of my assets into BitSE for mining, and one bitcoin was only about $150 at that time. At the end of 2016, the "ICO" boomed. I was successfully invested in the angel round financing of the quantum chain, which got me 100X. Since then, I have successively participated in the financing of many projects. Through these investments, I obtained the "first pot of gold". 

As a continuation of personal investment, I officially established Crypto Fund: LD CAPITAL. Soon, I realized the importance of internationalization and found elite investment partners in China, the United States, Europe, Singapore, Japan, South Korea and around the world. In the first ten months of its establishment, LD CAPITAL has invested in more than 80 projects, like GRE, Bitget, Bitgogo, Citex, Lbank, MEXC, BHEX, GGBTC, Coinsuper, BiLaxy... a portfolio with tons of exchanges.

Since its establishment, LD Capital has successively invested in more than 300 enterprises. With a highly professional global team and unique industrial resource advantages, LD Capital has laid its emphasis on offering superb services after investments, devoting to supporting the project in enhancing its long-term value and ecological investment throughout the life cycle.

What was the point when you first realized the scale and transformative potential of cryptocurrency’s proposition? Which aspects of this growing movement made you want to get involved?

When I first learnt about Bitcoin in 2016, its market value was only about $6.5 billion. The market value today has reached more than $400 billion, which has increased 60 times in only 6 years. This is because the cryptocurrency and blockchain technology is gradually becoming mainstream, and the giant capitals of Wall Street and big companies have purchased cryptocurrency one after another. 

Blockchain technology is in a stage of rapid development and because of this technology, human beings have truly mastered their own wealth for the first time in history. We do not need to rely on third-party institutions such as banks to record and store transaction data, which makes me truly feel free and willing to devote myself to the industry and contribute to the development of the technology. 

So I founded LD Capital and LD Research. We would love to provide all-round support for entrepreneurs who truly believe blockchain will change the world and come up with solutions for the crypto industry. We will provide support including position, strategic planning, economic model, fundraising, and market growth, etc.

We are looking forward to working with high-quality projects that are innovative and creative to realize the vision of a better world reconfigured by blockchain. We will be willing and active to be the first investor in early-stage projects, dare to share the risk and would like to grow together with outstanding entrepreneurs.

LD Capital has been on the market since 2016. How did the fund’s investment focus change or adapt throughout time?

This is a great question. To adapt to the rapid development of the industry, our investment strategy, investment focus, and fund positioning have also been changing. 

In 2018, the bear market began. We were too aggressive and we did not have a clear investment strategy, which led to investment losses. So we started to focus on investment and cut off all others, improving our understanding of the industry and the track. Besides, we comprehensively improved post-investment service capabilities and gained recognition and support from high-quality projects.

With 2 years‘ effort during the bear market, LD CAPITAL began to appear frequently in the financing news of various projects from 2021. We still have aggressive investment, but this time it is slightly different.

 We not only invest in exchanges and Asian projects, but invest in front-line international projects and pay attention to hot tracks. As a result, many international first-tier projects such as Flow, Mina, Assembly, Flare, Immutable X, CoinList, etc. have shown in LD CAPITAL's Portfolio.

 Besides, in the field of NFT and GameFi, LD's investment portfolio is even more successful: blockchain 3A game masterpieces like Illuvium and Bigtime, Render Network (distributed rendering network), Star Atlas (star game built on Solana ecological), Alien Worlds (first BINANCE IEO), etc.

Part of high-return portfolio in the GameFi field from LD Capital

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Please, tell me how does LD Capital obtain investment opportunities in international top tier projects in the highly competitive primary market?

We believe the reasons to get investment opportunities in top tier projects are as follow:

First of all, LD CAPITAL has the courage to be the first investor and does not care whether other VCs have already invested. We have always insisted on bold investment. Fortunately, our investment was right before the bull market this time.

On March 12, 2020, after a historic crash, the primary and secondary markets dropped to freezing point. Most entrepreneurs and investors chose to leave the market. However, we deeply believe in the blockchain so we chosed "ALL IN", and speed up the layout in the primary market.

In the words of investment managers from LD Capital, the short-term gap after March 12, 2020 was actually a golden period in the primary market: because there wasn‘t much competition among the market at that time, and it was relatively easy to get investment opportunities; and the valuation of many high-quality projects is only about $10m; Entrepreneurs who choose to move forward at the rock bottom are more trustworthy.

We are the first investor in many projects, not only giving money, but also giving confidence to the founders. It is risky, but we believe it is worthwhile.

Secondly, LD CAPITAL takes post-investment service seriously. All investment managers will provide post-investment services, including but not limited to strategic consulting, token economic model design, capital  relations, market growth, ecological cooperation, technology development and talent recruitment, etc.

For example, after investing in a transaction aggregator, LD not only helps the project obtain fundraising from top tier VCs, but also assists in connecting with IDO platforms and large exchanges, finding well-known KOLs and communities for cooperation, connecting with other DeFi projects, and continuing to participate in the development and construction of the project.

Thirdly, LD CAPITAL believes talents are the core of all investments. I have been thinking about how to attract talented investment managers and how to motivate investment managers all the time. LD CAPITAL has a more flexible incentive mechanism: sharing the investment quota with the investment manager, up to 30% of the investment can be invested. 

Therefore, some people once joked that in LD CAPITAL, they are investing for themselves.

In addition, partners can play an important role in the investment of top projects. Each partner has their own resource network and core competence circle. The investment of top projects such as Illuvium and Bigtime are largely dependent on partners‘ personal ability.

Currently, LD CAPITAL has nearly 40 people and is still actively expanding.

Fourthly, LD CAPITAL realized one thing very early is that with a large number of high-quality projects in the United States or Europe, "expanding overseas markets" has become a priority.

Therefore, LD CAPITAL began to recruit in the United States and Singapore, actively participated in various offline conferences and activities, and expanded projects. Through active offline operations, LD CAPITAL has invested in a large number of early-stage projects in the United States, many of which have not yet been exposed.

Last but not least, LD CAPITAL has laid out the Fund of Fund and expanded the resource network. In September 2021, LD CAPITAL announced the establishment of a $50 million blockchain parent fund to invest in outstanding global blockchain funds. We have invested in funds like 1kx Capital, Kraken Ventures, Republic Fund, Shima Capital, BigTime Ecological Fund, DHVC, etc.

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Investing in funds can make friends around the world, get to know more partners, and discover more good investment opportunities. Besides, we can reserve more resources for projects and provide post-investment services. Different institutions have different advantages and we hope to combine them to investment projects effectively. Post-investment services are the core.

On one hand, VCs such as Shima and Republic have become LD CAPITAL 's Deal Sourcing, and on the other hand, LD CAPITAL is also building a network to connect with top projects. For example, after LD CAPITAL invested in DAOMaker, we got a lot of deals.

A top AAA GameFi project invested by LD CAPITAL has introduced other top projects to LD CAPITAL, such as P2E game guild Polemos, which recently announced the completion of a $14 million seed round led by Framework Ventures and Delphi Digital, with LD Capital’s participation.

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I’m aware that one of the key pillars behind the success of LD Capital is long-term value and ecological investment. How do you transform this vision into practice?

The summary of the Q4 can be a good answer to this one. There are six reasons:

  • LD CAPITAL has the courage to be the first investor and does not care whether other VCs have already invested. 
  • We take post-investment service seriously. All investment managers will provide post-investment services, including but not limited to strategic consulting, token economic model design, capital relations, market growth, ecological cooperation, technology development and talent recruitment, etc.
  • We believe talents are the core of all investments and have a more flexible incentive mechanism.
  • Expanding overseas markets.
  • Pay attention to hot spot and lay out various projects on potential ecosystem.
  • LD CAPITAL has laid out the Fund of Fund and expanded the resource network.

 

 

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Marcus Patel
Marcus Patel

Crypto enthusiast equities analysis background. Early investor of Dogecoin, Shiba Inu and Monero


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