Nick’s Note: For the past few weeks, Palm Beach Confidential editor Teeka Tiwari has been pretty much under the radar. We’ve gotten a lot of emails from people asking what he’s been up to… So, I called Teeka and asked him what’s going on.
Nick: T, you disappeared the last few weeks. Where’d you go?
Teeka: I was invited to a private meeting of blockchain professionals. There were financiers, developers, coders, and visionaries there. Even one of the founders of Ethereum was in attendance. It’s rare to get all these types of people in the same room.
This was a room full of heavy hitters. I learned a lot at this meeting… But perhaps the most important thing is that investment in blockchain projects is not slowing down. In fact, it’s probably accelerating.
Normally after an industry drops 50% (the way the crypto market has), investors flee—especially the professionals who are involved in early-stage deals. Financing usually dries up after a crash like we recently had. But not with blockchain technology…
I’m seeing major top-tier venture capital firms step into this space for the first time. These guys missed the big gains from 2014–2017. But they’re trying to make up for lost time and are now making lots of investments.
Last year, according to investment analytical firm PitchBook, there were 377 deals done in the blockchain space. Already in the first two months of 2018, there were 138 completed deals. That means we’re on pace to see about 800 deals this year—more than double the amount of deals from last year.
This is going to lead to an absolute explosion in the technology.
Nick: Recently, you told me about a “second boom” happening in the crypto space. What’s driving it?
Teeka: Like any new industry, the crypto space was very small at the beginning and only the most diehard believers worked on developing it. And most of those people were hobbyists working on nights and weekends.
But that’ll change soon. With all this financing, the blockchain space has the money needed to attract the best and brightest coders in the world.
In fact, right now, kids coming out of college who have degrees in computer science want to go into either artificial intelligence (AI) or blockchain companies. They don’t want to work at Facebook or Google anymore.
One simple strategy I’ve followed throughout my investment career is to follow brainpower to profits. It has done exceedingly well. It got me into internet stocks in the ’90s and now it’s gotten me into the blockchain.
It’s impossible to have this many bright people working in an industry and not create value. Profits will inevitably follow.
Palm Beach Daily