OUTLIERS FUND I~III INVEST

WITH THE REVOLUTION OF

BLOCKCHAIN COMPUTING

OUTLIERS FUND I~III INVEST WITH THE REVOLUTION OF BLOCKCHAIN COMPUTING

1. High-level Perspective

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2009

Blockchain 1.0

Cryptocurrency

The unit of accounts, medium of exchanges, store of values first stored on a traceable & non-reversible distributed ledger.

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2015

Blockchain 2.0

Smart Contract

Makes blockchain programmable and powers DeFi, GameFi, NFT & all dApps as the operating system of the blockchain infrastructure.

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2021

Blockchain 3.0

Internet Computer

Extends the web functionality into a public compute platform by running smart contracts on the Internet at Web speed & scale.

2. Investment Strategy

We Invest in Research-driven Ventures on the Open & Decentralized Web with Strong Ecosystem Effects

Token-based Investment

We invest $100k-$1M in security, utility, and governance tokens that have 100x growth potential in 2-4 years.

These are determined by its market size, growth, capitalization, tokenomics and user incentives. 

These tokens usually evolve into ecosystems, enabling tens or hundreds of applications with network effects.

Equity-based Investment

40% invest in Pre-A – Series A rounds with core team, prototype and business plan ($100-500K)

60% double down in Series B – growth rounds with high growth & clear exit strategy ($500K-2.5M)

We focus our equity investment on those with clear exit opportunities in 4 years with 10-100x return.

Investment Areas

Infra-level Research Innovation
Hardware, Network, IPFS, Layer 1 Protocols, Layer 2 Solutions, Interoperability, Parachain, Sidechain, Off-chain Solutions.
Enterprise Systems & Services
Developer Platform & Tools, Analytics Platform & Tools, APIs, Security Solutions, Cloud Providers, Identity Network.
Decentralized Finance & FinTech
CEX, DEX, AMM, DAO, Wallet, Oracle Network, Synthetic Asset, Prediction Market, Financial Derivatives.
Entertainment & Creativity
Creator Platform & Tools, Gaming Platform & Tools, Metaverse, NFT Marketplace & Applications.

Ecosystems We Believe in & Support

Internet Computer, Ethereum, Cardano, Polkadot, Solana, Stellar, Cosmos, NEO, Algorand, Flow, Harmony.

3. Deal Sourcing

We Systematically Build In-bound Deals Flow with Earlier Access & Better Terms

Founder-driven

We value trust & long-term relationships with founders that are invested or accelerated by Outliers. This results in referrals of strong and like-minded outliers to our investment pipeline and accelerator programs. With early deal access, trust & vetting by our founders, we make quick and confident decisions.

Ecosystem-driven

The blockchain economy has evolved into several strong ecosystems driving network effects. The more funding and support to the ecosystem, the bigger/faster the applications and services, the higher the value of the underlying assets. We invest heavily into the ecosystem we believe in and support.

Research-driven

We believe the most disruptive innovations are unleashed from foundational scientific breakthroughs, so we collaborate with research laboratories and communities from top universities to gain early access to research ideas and spinoffs, especially by reputable professors & PhDs.

Event-driven

The Outliers community is now spread across 15 cities in Asia, the US and Middle East. We actively attend global blockchain/academia conferences and local startup events to seek new teams, technologies, adoptions and continuously challenge our beliefs and directions of the future.

4. Portfolio Management

We build an active ecosystem of portfolio companies and support

Diversification by Ecosystem

We are actively building a strong portfolio of projects towards a similar vision based on the ecosystems we believe in, support, and understand from a fundamental research perspective: Internet Computer, Ethereum, Cardano, Polkadot, Solana, Stellar, Cosmos, NEO, Algorand, Flow, Harmony.

Institution-grade Token Management

For Proof-of-Stake tokens in our portfolio, we will stake them in institution-grade staking providers to earn passive rewards as a validator, providing liquidity & security to the network. This is an active way of supporting the token ecosystems and driving the token volume & network effects.

Portfolio Management & Tracking

We track our portfolio monthly – quarterly on

  • Financial: cash position, burn rate, funding
  • Technical: development, security, scalability
  • Talent: recruitment, management, expansion
  • Growth: revenue, transaction, total value locked, market cap, download, user adoption & growth

Value Add to Our Portfolio

We support our portfolio with expertise & connections in

  • Fundraising strategy & opportunities (esp in Asia)
  • Research collaboration, innovation, publication
  • Recruiting executives, developers, advisors
  • Product development, design, growth hacking
  • Token economics design, adoption, network effects

5. Exit Strategy

We Capitalize on Exponential Returns Made Possible by the Network Effects of a Decentralized Economy

Traditional startup equity could only be invested by accredited investors with limited transparency, and exited to enterprises via M&A or to the public via IPO. 

Security Tokens are like startup equity that represent an ownership position of a corporation; Utility Tokens provide users the access to interact with the products/services built on blockchain; Governance Tokens give users participation, voting, decision making rights over the protocol. Tokens exited through a community of users, developers, investors, which are sometimes the same person. 

With the nature of faster liquidation & higher volatility in this space, we actively seek to build out a larger portfolio which increases our possibility of exponential returns, and identify the best exit timing for each token.

Macro-view (Market)

  • Technical & Sentiment Analysis
  • Bitcoin Halving & Pi-Cycle
  • Etherscan Statistics & Charts
  • Transactions & Contracts Data
  • Industry Financials & Ratios
  • Market Size, Growth, Competition
  • Crypto Regulations & Policies
  • Economic & Tax Incentives
  • Research & Development Activities
  • Exchange Data & Systematic Risk

Micro-view (Project)

  • Fundamental Analysis
  • Major Events (upgrade, fork, burn)
  • Tokenomics & Network Effects
  • Market Cap, Trading Volume, TVL
  • Node Deployment & Operations
  • Staking Volume, Rewards, Providers
  • Ecosystem Support & Partnership
  • Commercialization & User Adoption
  • Funding & Liquidation Events
  • Correlated Verticals & Projects

Be A Part of the Outliers Story!