Four years ago, a friend introduced me to a crypto fund in Mexico to be a potential LP.
I had an intro call with the CEO.
He had an ambitious mission.
Build the biggest crypto fund in Latin America.
1. He was charismatic, full of energy, optimistic.
2. He could sell and generate clients fast.
3. He was well-connected.
However, being an LP didn’t resonate with me because I thought I knew the industry better than him, and he would not generate the returns I would for myself.
So, I requested to become a full GP.
I didn't mind a smaller % return if it was from the total pie.
Today:
→ 80% of the fund has been “forced liquidated” because of poor risk management.
→ The other 20% is locked in stablecoins.
→ Decisions were made without board approval.
I'd be extremely hard-pressed to find a more effective losing strategy in what’s supposed to be a bull year in crypto.
The returns have been horrible, but no surprise after this time of total DEJADEZ (neglect in Spanish). The word I most repeated over this time as my feedback to them.
I often felt that I had entered at an 8 figure valuation into a ghost company.
Not much more substance than a lonely analyst far away from the lost company's leaders.
Lost both mentally and physically.
All this “dejadez” in the form of a total lack of communication, clarity, and commitment from the founders resulted in big emotional wear on me.
Even worse on them.
Including physical threats from less understanding LPs.
Lesson to self: Invest in founders who are present and know what they are doing.
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