Happy Friday for everyone, this is a blow to finance editor Jeff Roberts for Allie. Since I moved to Southern California two years ago, I was shocked by the booming venture capital scene in the region compared to Silicon Valley and New York. I recently spoke with Adam Winnick, a veteran on the scene.
Winnick is a lively person and has the most important VC quality that can bring together influential people. Last month, I met him at a dinner for members of his Medici Network (a crypto-focused institutional investor meeting), from startups to bankers to representatives of Ivy League endowments and representatives of sovereign wealth funds, everyone gathered together.
Dinner was held in Avra in Beverly Hills. Having participated in a few of these things, one thing I noticed – from the quality Mediterranean food, it feels normal. There was a time when everyone who participated in cryptocurrency activities saw themselves as an outsider, and the venture capital industry saw crypto venture capitalists as different varieties of playing different games.
I’m not sure that’s the case. Now, cryptocurrency investment feels like another stream of venture capital, although there are still some obvious differences, especially when it comes to getting paid. Unlike the traditional model, where VC acquires a stake in Bushel from a startup and then waits for seven years, Crypto VC World is more liquid and revolves around tokens rather than inventory. (If you want to take a closer look, please check this information Diving deep about Leo’s topic).
In the early days, a mix of cryptocurrencies and venture capital could lead to some pretty creepy behavior – thinking that venture capitalists fill their bags with tokens associated with half-familiar projects and then pour it on retail investors. However, recently, adopting a tighter lockdown period has curbed some of the worst abuses, and the arrival of expected clear regulations should improve things further.
For him, Winnick is a big advocate of the token model. “It’s a powerful incentive to guide network effects. Just because people abuse them today or don’t know how to treat them doesn’t mean they won’t be used in the future,” he observed.
If the world of traditional technology and cryptocurrencies are closer, as Winnick predicts, tokens may become a more common feature of the VC landscape. If this convergence does occur, Winnick says, the winners will be those who can figure out how to combine the so-called mature technology stack and extensive business network with the highly technological and capital-intensive dynamics of Web3.
Winnick is a former banker and his co-founder Kamel Mokeddem, a former Oracle Exec, appears to be cracking cryptocurrency investments. At the end of last year, the IRR of the $45 million fund established by its company’s final partner was 69%, and it has investments in Series A for promising crypto-company products such as Eigen Layer and Babylon. Meanwhile, despite being early stages, the fund’s second automotive liquid fund has risen 12% this year, when many other funds released flat or negative returns in the first part of 2025.
Although the ultimate partner was attracted by the giants of the Crypto VC world like the A16Z and Haun Ventures, the traction their partners gained showed that they had found a lane of their own, a Winnick attribute of achievement, because he was willing to give direct advice to the company’s corporate companies.
As always, the glossary would love to hear what you think. Do you think the world of cryptocurrencies and traditional venture capital is getting closer? Finally, while reading this column, I met a New York business journalist describe LA Venture Capital is more “passively aggressive” on the scene. Fair?
See you on Monday
Jeff John Roberts
X: @JeffJohnRoberts
e-mail: jeff.roberts@fortune.com
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Risk Trading
– Senra SystemA developer in the aerospace and defense industry in Redondo Beach, California raised $25 million in Series A funding. Dylan Field and folk Lead the tour, joined General catalyst,,,,, Sequoia,,,,, Founder’s Fundand others.
– MercanisBerlin-based agent AI-powered procurement solutions provider raised $20.4 million in Series A funding. Parttech and AVP Lead this round and join with existing investors SIGNALS.VC,,,,, Capummont Technology,,,,, Speedinvestand angel investors.
– tadawebThis is a Luxembourg-based provider of public information and open source intelligence operating systems that raised $20 million in funding. Arsenal’s Growth and Forgepoint Capital Lead this round and join by existing investors Forgepoint Capital International.
– SwarmiaA Helsinki-based software engineering intelligence platform developer raised 10 million euros ($11.5 million) in funding. You take a risk and Karma adventure Lead the tour, joined The Romans had and Cal Henderson.
– polarityIt is a Stockholm payment infrastructure targeting SaaS businesses, raising $10 million in seed funding. accelerate Lead the round and joined by angel investors.
– BrandBackA Berlin-based resale infrastructure provider, raised $7.4 million in funding. Early bird Leading the $5.7 million seed round and joining 9900 Capital There are others. 9900 Capital Leading a $1.7 million preplanting round, joined by Angel Investors.
– Embeda Gothenburg, a Swedish-based AI reasoning optimization technology company, raised 5.5 million euros ($6.3 million) Chalmers Adventure,,,,, Fairpoint Capital,,,,, Seb Greentechand others.
– Project 11A quantum technology company based in New York City raised $6 million in seed funding. Variants and Quantitative Lead the tour, joined Castle Island Venture Capital,,,,, Deformationand form.
– swebraalIt is a Stockholm-based TNT company that raised 3 million euros ($3.4 million) Karl Engelbrektson,,,,, Thomas von Koch,,,,, PärSvärdsonand others.
– SportsvisioBoston-based AI-driven sports analytics company, from Strong capital,,,,, Sony Innovation Fund,,,,, Alumni adventure,,,,, Waterstone Impact Fundexisting investors Sapphire Sports,,,,, Hyperplaneand sovereign capital and angel investors.
Private Equity
– Bitde,Depend on Vitruvia partner,get Grid securitya Dublin-based provider of email security solutions. Financial terms are not disclosed.
– HG Insights,Depend on Riverwood Capital,get Trustradiusan Austin-based customer reviews and buyer intelligence solution. Financial terms are not disclosed.
other
– Ares Management Acquired a minority stake French SailGP teama competitive sailing fleet based in Paris. Financial terms are not disclosed.
– Dai Nippon Printing Acquired a majority stake LaxtonSanta Maria da Feira, a Portugal-based provider of biometric solutions. Financial terms are not disclosed.
– Nuwen Agree to obtain Brooklyn Investment Groupa Brooklyn-based registered investment consultant and its parent company, Brooklyn Artificial Intelligencea direct indexing technology developer based on Brooklyn-based asset managers. Financial terms are not disclosed.
people
– Aquiline Capital PartnersIt is a New York City-based investment company that facilitates Daniel Flueckiger,,,,, Stewart Koenigsberg,,,,, Dante La Ruffaand Matthew Woeste and his partner.
