Spencer Farrar, Partner at Theory Ventures, on Web3 Venture Capital, Funding, and Strategy | Ep. 334
In a recent exclusive interview with Cryptonews, Spencer Farrar, a Partner at Theory Ventures, talked about the recent difficulty of raising capital and how the Theory team managed to do it.
Chatting with Cryptonews Podcast’s host Matt Zahab, Farrar discussed the necessity of projects having an edge that makes them unique and attractive to investors.
Lastly, he stressed the importance of thorough research and understanding the market, as well as the type of companies Theory is investing in.
Farrar noted that the total dollar amount deployed into the venture space was the lowest it’s been in several years.
Therefore, 2023 was a hard year for emerging managers to raise capital.
Despite that, Theory Ventures managed to raise millions. The team was fortunate, persistent, and “greedy when others are fearful,” as Warren Buffett once said.
Fundamentally, we are guided by thesis-driven principles, with an emphasis on researching ideas, cultivating well-founded viewpoints, and applying those insights to back founders from the earliest inceptions of their ventures.
— Spencer Farrar (@SpencerFarrar) April 25, 2023
For an investor, it’s very important to have an “edge” and fully understand what that edge is.
On the other hand, for a founder, a big part of one’s strategy when taking money should be making sure that there’s alignment with investors.
“And I think when taking money,” Farrar said, “it’s important to actually do some thought around cap table design and understand: I’m going to get support from my main lead investor here, and these angels can introduce me to these ecosystems or help with business development.”
Notably, he added that the most influential people are actually on Twitter.
When it comes to Theory Ventures, Farrar
