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Investments

107

Portfolio Exits

3

Funds

4

About Polychain Capital

Polychain Capital is a hedge fund that specializes in the trading of blockchain-based assets.

Polychain Capital Headquarter Location

548 Market Street Suite 64375

San Francisco, California, 94104,

United States

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Find Polychain Capital in 3 Expert Collections, including Blockchain.

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4,233 items

Companies and startups in this collection leverage blockchain technology for crypto trading, decentralized finance (DeFi), NFTs, and more.

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Fintech 250

248 items

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Research containing Polychain Capital

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CB Insights Intelligence Analysts have mentioned Polychain Capital in 3 CB Insights research briefs, most recently on Oct 19, 2021.

Latest Polychain Capital News

A Beginners Guide to Polkadot (DOT)

May 3, 2022

All you need to know about Polkadot (DOT) Tuesday, 03/05/2022 | 09:46 GMT 0 Currently, the crypto-sphere is booming with new and innovative projects constantly building and refining cutting edge technology for the future, and Polkadot (DOT) is no exception. Polkadots is a Layer 0 protocol that allows transfers of any type of data across any blockchain connected through a para chain without sacrificing security or efficiency, creating true blockchain interoperability as we have never seen before. What Is Polkadot? Polkadot is currently one of the largest cryptocurrencies around, hovering around rank 12 with a market cap of around $20bn. It currently has just less than a billion DOT in circulation, with 1.1bn in total supply. Polkadots main aim is to create an internet where users have complete control over their data and identity in a completely decentralized web, unlike what we currently have in Web 2.0. We will dive deeper into how they are currently working to make this aim a reality through parachains and much more. Polkadot currently has the capacity for 1,000 transactions per second, compared to Ethereum’s 15 for example, with founder Gavin Wood publicly claiming the potential for up to 1,000,000 transactions per second in the future. Keep Reading The Web3 Foundation, a swiss owned foundation, is providing grants for the development of decentralized apps and projects to be built on the Polkadot ecosystem through the use of parachains. It is also working with the likes of Parity Technologies and Polychain Capital to aggregate the best minds and willing investors in the space. How Does The Ecosystem Work? The native token in the Polkadot ecosystem is $DOT and is crucial to most interactions in the ecosystem not exclusive to paying transaction fees, staking and paying for parachain auction slots and governance. The use of DOT in governance is a great way Polkadot ensures its token holders are the ones affecting the decision making on the chain, making a truly decentralized ecosystem. Polkadot Relay Chain The relay chain constantly working inside Polkadot is the central chain of the system. The relay chain is where all validation occurs for the entire network of parachains, done through their nominated proof of stake consensus mechanism (NPoS). The relay chain was purposefully kept simple, such as avoiding smart contracts, as it acts as the layer on which specific utility is built on top of to enable such benefits as: Shared Security ADVERTISEMENT Any parachain connected to the relay chain benefits from the security of the relay chain, allowing smaller parachains to reap the rewards from a trusting network of validators, without having to create a whole new validation system for their project. Bridges Bridges are the middlemen between the relay chain and the connected parachain, allowing all types of data to flow through from other blockchains which normally could not comminute, such as Bitcoins blockchain to Polkadot. Bridges are fundamental to creating an interoperable blockchain (one that works with others) and, therefore, the key to creating a decentralized yet connected Web 3.0. Parachains Parachains are what set Polkadot apart from other protocols. Parachains are simply non-native blockchains with their own token and function attached to the Polkadot ecosystem through a bridge. The parachain will benefit from the security and validation that Polkadots relay chain brings. Parachains use a sharded model, which means transactions coming in from many different parachains are validated in parallel with each other, not one after another, creating the massive potential for scalability. Sourced directly from Polkadot, this image perfectly demonstrates how the relay chain, bridges and parachains are all interacting with each other in unison, not one by one. So, Who Is Making This All Happen? Polkadot is completely decentralized, so there is no governing power pulling all the strings, it is a collective effort to ensure the validity and security of the blockchain and consequently, the parachains. Polkadot relies on three main moving parts to keep a secure decentralized blockchain: Validators, Nominators and Collators. Validators Nominators Nominators, often known as delegators, are essential for any DOT token holder choosing to delegate a certain amount of DOT towards a specific validator to help secure the relay chain. Nominators are incentivized to choose trustworthy validators and those with a good track record, making the validators want to be trustworthy, benefiting the whole eco-system. Nominators need to be careful with their validator of choice to reduce the risks of slashing events. Collators Governance Roles The decentralized nature of Polkadot requires a good governance system to make Gavin Woods' vision of true decentralization happen. Decisions are voted on by two groups; Council members and the Technical Committee. Council members are elected representatives there to vote on decisions on the behalf of passive DOT holders. The technical committee is made up of several teams actively working within the Polkadot ecosystem. Benefits of Polkadot Polkadot has the ability to transfer any arbitrary data between any type of blockchain, whether it be private or public. This creates the ability to validate public information through a private blockchain. Polkadot uses the example of degree verification. A private and permissioned blockchain sends data to a public blockchain to verify the proof of an individual’s degree certificate, without violating anyone’s privacy. Future Proof Blockchains One Chain Model Is Not Inclusive Gavin is a Co-Founder of the second-biggest cryptocurrency ever, yet still decided to move away from Ethereum toward Polkadot. He lives and breathes his philosophy on blockchains that a singular blockchain is not enough, and will not be enough for mass adoption. With Polkadots sharding or parachains, there is ample room for innovative dApps to build on without worry of a potential bottleneck due to Polkadots relay chain parallel transaction processing. Polkadot aims to add even more slots for other chains, along with a constantly increasing threshold for its transaction per second capability. Having a project such as Polkadot, which understands that allowing other blockchains to flourish, and not be a gatekeeper forcing one blockchain to do it all, is the key to mass adoption in the future and working towards making their dream of a trustless and permissionless web come to life. Decentralization at Heart Gavin is well known in the cryptocurrency community as a founder who stands wholeheartedly by a decentralized web, even if he could profit more from the current Web 2.0 situation. He strongly believes in the likelihood of harsh regulations coming to cryptocurrency much earlier than most, around 1-2 years, and has already begun putting steps in place to ensure the aspects which he believes the regulators will come for the hardest are the main focus of decentralization for Polkadot. Feeless Transactions Due to the interoperability, parachains of Polkadot can offer feeless transactions, while still providing security through the relay chain, which is a massive competitive advantage. *Feeless transactions mean users will be able to access a completely trustless and permissionless ecosystem of blockchains, with security from the relay chain, without even having to have a wallet connected to the ecosystem to interact. Drawbacks of Polkadot A major drawback to Polkadot is the lack of a future roadmap, currently ending at the release of parachains and further auctions, which have already been undergoing. Lacking a future roadmap can cause the project to stagnate and make progress move very slowly. Weak Governance DOT holders, the ones supposed to be voting for changes and upgrades in the Polkadot ecosystem are simply not voting enough! The lack of proper engagement could stagnate progress in the ecosystem. Competition for Talent Polkadots’ nearest competition for talented coders and developers are NEAR and Solana protocols as they all utilize rust. These other projects have been receiving a lot more funding, which trickles down to coders and developers. Polkadot Conclusion Polkadot has large strides to make before all its dreams become reality and has competitors such as COSMOS knocking on its doorstep. However, Polkadot has a team with a proven track record, massive institutional funding and fundamentals which align with the core values of all true cryptocurrency users. Trustless, permissionless and decentralized communication, finance and governance could be the reason Polkadot is here to stay. Currently, the crypto-sphere is booming with new and innovative projects constantly building and refining cutting edge technology for the future, and Polkadot (DOT) is no exception. Polkadots is a Layer 0 protocol that allows transfers of any type of data across any blockchain connected through a para chain without sacrificing security or efficiency, creating true blockchain interoperability as we have never seen before. What Is Polkadot? Polkadot is currently one of the largest cryptocurrencies around, hovering around rank 12 with a market cap of around $20bn. It currently has just less than a billion DOT in circulation, with 1.1bn in total supply. Polkadots main aim is to create an internet where users have complete control over their data and identity in a completely decentralized web, unlike what we currently have in Web 2.0. We will dive deeper into how they are currently working to make this aim a reality through parachains and much more. Polkadot currently has the capacity for 1,000 transactions per second, compared to Ethereum’s 15 for example, with founder Gavin Wood publicly claiming the potential for up to 1,000,000 transactions per second in the future. Keep Reading The Web3 Foundation, a swiss owned foundation, is providing grants for the development of decentralized apps and projects to be built on the Polkadot ecosystem through the use of parachains. It is also working with the likes of Parity Technologies and Polychain Capital to aggregate the best minds and willing investors in the space. How Does The Ecosystem Work? The native token in the Polkadot ecosystem is $DOT and is crucial to most interactions in the ecosystem not exclusive to paying transaction fees, staking and paying for parachain auction slots and governance. The use of DOT in governance is a great way Polkadot ensures its token holders are the ones affecting the decision making on the chain, making a truly decentralized ecosystem. Polkadot Relay Chain The relay chain constantly working inside Polkadot is the central chain of the system. The relay chain is where all validation occurs for the entire network of parachains, done through their nominated proof of stake consensus mechanism (NPoS). The relay chain was purposefully kept simple, such as avoiding smart contracts, as it acts as the layer on which specific utility is built on top of to enable such benefits as: ADVERTISEMENT Shared Security Any parachain connected to the relay chain benefits from the security of the relay chain, allowing smaller parachains to reap the rewards from a trusting network of validators, without having to create a whole new validation system for their project. Bridges Bridges are the middlemen between the relay chain and the connected parachain, allowing all types of data to flow through from other blockchains which normally could not comminute, such as Bitcoins blockchain to Polkadot. Bridges are fundamental to creating an interoperable blockchain (one that works with others) and, therefore, the key to creating a decentralized yet connected Web 3.0. Parachains Parachains are what set Polkadot apart from other protocols. Parachains are simply non-native blockchains with their own token and function attached to the Polkadot ecosystem through a bridge. The parachain will benefit from the security and validation that Polkadots relay chain brings. Parachains use a sharded model, which means transactions coming in from many different parachains are validated in parallel with each other, not one after another, creating the massive potential for scalability. Sourced directly from Polkadot, this image perfectly demonstrates how the relay chain, bridges and parachains are all interacting with each other in unison, not one by one. So, Who Is Making This All Happen? Polkadot is completely decentralized, so there is no governing power pulling all the strings, it is a collective effort to ensure the validity and security of the blockchain and consequently, the parachains. Polkadot relies on three main moving parts to keep a secure decentralized blockchain: Validators, Nominators and Collators. Validators Nominators Nominators, often known as delegators, are essential for any DOT token holder choosing to delegate a certain amount of DOT towards a specific validator to help secure the relay chain. Nominators are incentivized to choose trustworthy validators and those with a good track record, making the validators want to be trustworthy, benefiting the whole eco-system. Nominators need to be careful with their validator of choice to reduce the risks of slashing events. Collators Governance Roles The decentralized nature of Polkadot requires a good governance system to make Gavin Woods' vision of true decentralization happen. Decisions are voted on by two groups; Council members and the Technical Committee. Council members are elected representatives there to vote on decisions on the behalf of passive DOT holders. The technical committee is made up of several teams actively working within the Polkadot ecosystem. Benefits of Polkadot Polkadot has the ability to transfer any arbitrary data between any type of blockchain, whether it be private or public. This creates the ability to validate public information through a private blockchain. Polkadot uses the example of degree verification. A private and permissioned blockchain sends data to a public blockchain to verify the proof of an individual’s degree certificate, without violating anyone’s privacy. Future Proof Blockchains

Polychain Capital Investments

107 Investments

Polychain Capital has made 107 investments. Their latest investment was in Commonwealth as part of their Series A on May 5, 2022.

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Polychain Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

5/25/2022

Series A

Commonwealth

$20M

Yes

3

5/16/2022

Seed VC

Satori

$10M

Yes

1

5/11/2022

Seed VC - II

Branch

$12.5M

Yes

1

5/2/2022

Seed VC

Subscribe to see more

$99M

Subscribe to see more

10

4/27/2022

Series A

Subscribe to see more

$99M

Subscribe to see more

10

Date

5/25/2022

5/16/2022

5/11/2022

5/2/2022

4/27/2022

Round

Series A

Seed VC

Seed VC - II

Seed VC

Series A

Company

Commonwealth

Satori

Branch

Subscribe to see more

Subscribe to see more

Amount

$20M

$10M

$12.5M

$99M

$99M

New?

Yes

Yes

Yes

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

3

1

1

10

10

Polychain Capital Portfolio Exits

3 Portfolio Exits

Polychain Capital has 3 portfolio exits. Their latest portfolio exit was MyCrypto on February 01, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

2/1/2022

Acquired

$99M

5

1/18/2022

Acquired

Subscribe to see more

$99M

Subscribe to see more

10

4/14/2021

IPO

Subscribe to see more

$99M

Subscribe to see more

10

Date

2/1/2022

1/18/2022

4/14/2021

Exit

Acquired

Acquired

IPO

Companies

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

$99M

Acquirer

Subscribe to see more

Subscribe to see more

Sources

5

10

10

Polychain Capital Fund History

4 Fund Histories

Polychain Capital has 4 funds, including Polkadot Ecosystem Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

10/9/2019

Polkadot Ecosystem Fund

$7M

1

9/3/2019

Polychain Ventures

$99M

10

Polychain Ventures II

10

dao5

$99M

10

Closing Date

10/9/2019

9/3/2019

Fund

Polkadot Ecosystem Fund

Polychain Ventures

Polychain Ventures II

dao5

Fund Type

Status

Amount

$7M

$99M

$99M

Sources

1

10

10

10

Polychain Capital Team

4 Team Members

Polychain Capital has 4 team members, including current Founder, Chief Executive Officer, Olaf Carlson-Wee.

Name

Work History

Title

Status

Olaf Carlson-Wee

Founder, Chief Executive Officer

Current

Matt Perona

Criterion Capital Management, Meetinghouse, and PwC

Chief Financial Officer, Chief Operating Officer

Current

Joseph Eagan

Tiger Legatus Capital Management, Investcorp, Amber Capital, Cherry Capital, and Bank of America

President, Chief Operating Officer

Former

Rob Witoff

Chief Technology Officer

Former

Name

Olaf Carlson-Wee

Matt Perona

Joseph Eagan

Rob Witoff

Work History

Criterion Capital Management, Meetinghouse, and PwC

Tiger Legatus Capital Management, Investcorp, Amber Capital, Cherry Capital, and Bank of America

Title

Founder, Chief Executive Officer

Chief Financial Officer, Chief Operating Officer

President, Chief Operating Officer

Chief Technology Officer

Status

Current

Current

Former

Former

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