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Round13 Digital Asset Fund Posts Over 40% Gains

Release | Feb 21, 2024

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Round13 Digital Asset Fund (DAF) Posts Over 40% Gains Despite Volatile Market

TORONTO – February 20, 2024Round13 Digital Asset Fund (DAF), a native crypto fund in Canada with an innovative open-ended structure, announced yesterday gains exceeding 40% since its inception in April 2022, despite the turbulent market backdrop. This achievement underscores the Fund's exceptional ability to outperform major cryptocurrencies, with a 30% lead over BTC and a 60% advantage against ETH.

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Leveraging strategic investments in 20 portfolio companies across pivotal stages such as Seed and Series A, with investments ranging from $250,000 to $5 million, Round13 DAF has curated a diverse and impressive portfolio. These companies are pioneering advancements across crucial crypto market segments, including AI, gaming and Metaverse, identity, and infrastructure. Noteworthy portfolio companies include Wombo, Improbable, Confirm, and ChainSafe.

Several portfolio entities have successfully secured funding at significantly enhanced valuations, demonstrating resilience and growth potential. A notable aspect of the Fund's portfolio is the presence of token projects poised for native token launches this year, further enriching the investment landscape. Round13 DAF remains optimistic about the prospect of additional liquidity events from its venture deals in the next three years.

Established by Round13 Capital, a venture and growth-stage investment firm co-founded by Bruce Croxon and John Eckert, Round13 DAF is focused on blockchain innovation and digital asset markets. The Fund's structured approach to onboarding new investors quarterly, coupled with its steadfast resilience and innovation, sets it apart in the fast-paced digital asset domain.

A Bright Future for Digital Assets

With an eye on the next 12-24 months, Round13 DAF's confidence in the digital asset market is stronger than ever. The U.S.'s recent approval of Spot Bitcoin ETFs marks a new era of growth and institutional adoption for BTC and ETH. This optimism is anchored in the belief that the digital asset market is on the cusp of significant expansion and mainstream finance integration.

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Satraj Bambra, Managing Partner and CIO at Round13 DAF:

"Our dual focus on crypto capital markets and venture capital has been fundamental to our strategy.  This approach has enabled us to adeptly navigate varying market conditions, including the recent downturns and market uncertainties post-FTX collapse.  Our vision is to continue leading in the digital asset space, driving innovation, stability, and growth.  With the market poised for monumental shifts, our strategic positioning enables us to capitalize on the upcoming value surge, with BTC projected to exceed $150,000 and ETH to surpass $10,000 in the next two years."

Dig Deeper with Khaled Verjee – Managing Partner, Round13 DAF

NCFA got in touch with Round13's Digital Asset Fund, Managing Partner, Khaled Verjee to answer some additional questions.

Q: Given the impressive performance of Round13 DAF amidst a turbulent crypto market, what specific criteria or evaluation process does the fund use to select portfolio companies? 

A: Our selection of portfolio companies is underpinned by an evaluation process that emphasizes several key criteria. Firstly, Round13 DAF prioritizes companies that have secured enough capital to sustain operations for at least a three-year runway. This criterion underscores the importance of financial stability and resilience, ensuring that the company can navigate market volatilities without the immediate need for additional funding. Companies also need to have solid fundamentals and a robust business model, demonstrated by an established performance track record which includes clear revenue models, customer acquisition strategies, and scalable operations

We look for a strong technical founder – which is crucial for driving innovation and technical excellence, especially in the rapidly evolving crypto and blockchain sector. We also look for a second or third time CEO as these leaders bring proven track records of navigating startups to success, learning from past experiences, and applying those lessons to avoid common pitfalls and accelerate growth.

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Given the technical complexity of blockchain technology, the Fund emphasizes the importance of a strong user interface and ease of use. The portfolio companies we invest in make blockchain technology easy to use and accessible, essentially making the complexity of blockchain invisible to the user. This focus ensures that products and services can achieve wider adoption by being user-friendly and intuitive.

Q: How does Round13 DAF differentiate its investment strategy from other crypto funds, particularly in terms of portfolio diversification and risk management? 

We understand that narratives play a big role in how the market moves. Round13DAF distinguishes its investment strategy from other crypto funds through a nuanced approach to portfolio diversification and risk management, and our ability to strategically rotate in and out of assets based on our analysis of market narratives – which both protects investments from undue volatility and also maximizes returns by entering and exiting positions at opportune times. This agility is a critical differentiator.

Q:  A lot has been written about the mashup of AI integration into the crypto sector.  What are your thoughts on the future?

AI integration into the crypto sector is a natural intersection where both technologies complement each other and drive efficiencies. For instance, the ability to verify AI-generated images or videos as true copies highlights how the blockchain can enhance the credibility and security of digital content. Additionally, by aggregating latent computing power from devices like mobile phones, computers, and gaming machines, the crypto sector can offer a cost-effective and accessible means to power AI models. This not only democratizes access to AI by reducing costs but also leverages the decentralized nature of blockchain technology for training AI models.


NCFA Jan 2018 resize - Round13 Digital Asset Fund Posts Over 40% GainsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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