The Active Investor: Shima Capital’s Approach to Crypto Venture Capital
Despite the challenges posed by a bear market and recent industry turmoil, Shima Capital has remained one of the most active investors in early-stage crypto companies. Founded in 2021 by finance veteran Yida Gao, the venture-capital firm has backed over 100 companies in just two years. Shima Capital takes a barbell approach to investing, with a focus on infrastructure deals and consumer apps, particularly gaming. The firm’s investments typically range between $500,000 to $2 million, and it primarily focuses on token investments with a two- to four-year lockup period. Shima also provides operational support through its proprietary platform for portfolio companies. While the collapse of FTX and three banks had minimal impact on Shima, the firm has strengthened its due diligence process and encourages founders to diversify their funds across different accounts.
Main Breakdowns:
- Shima Capital remains active in the crypto venture capital space despite a bear market and industry turmoil.
- The firm takes a barbell approach, investing in infrastructure deals and consumer apps, particularly gaming.
- Investments typically range between $500,000 to $2 million, with a focus on token investments and a two- to four-year lockup period.
- Shima provides operational support through its proprietary platform for portfolio companies.
- The firm has strengthened its due diligence process and encourages founders to diversify their funds across different accounts.
Hot Take:
Shima Capital’s active approach to investing in early-stage crypto companies, despite market challenges, demonstrates the firm’s confidence in the long-term potential of the industry. By focusing on infrastructure and consumer apps, Shima positions itself for success in both the development and adoption of blockchain technology. The firm’s commitment to operational support and due diligence further enhances its ability to navigate risks and support founders. As the crypto market continues to evolve, Shima’s proactive and versatile investment strategy sets it apart in the venture capital space.
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