♠️ DCG (Digital Currency Group) crypto portfolio breakdown
4 min read

♠️ DCG (Digital Currency Group) crypto portfolio breakdown

Welcome to zero knowledge. A weekly newsletter breaking down where the top VCs are investing in web3/crypto.

Expect portfolio breakdowns (like this) every week (usually Tuesday, this portfolio was a beast). And other crypto topics, insights, and updates everywhere in between.

Here we go 💪


Outline

DCG was founded in 2015 with $25 million in AUM. 7 years later, their AUM is $50 billion 🤯. In addition to backing more than 200 blockchain companies, they own the following subsidiaries:

They've built an empire, and about a year ago, Softbank, Alphabet's CapitalG, and Ribbit Capital all bought equity stakes in DCG valuing the investment firm at over $10 billion+.

Here's what to expect below 👇

  • Recent funding news from DCG.
  • DCG's portfolio broken down by layer, blockchain, company type, and category.
  • 🕵️‍♂️  The most interesting company in their portfolio.
  • 💼 Entire DCG portfolio (in an Airtable sheet).
  • 💰 Tokens available from DCG portfolio companies.

Recent funding news from DCG

1. Flipside Crypto Raises $50M at $350m valuation to provide blockchain analytics and business intelligence to crypto companies (equity 💵)

  • Flipside analyzes blockchain networks through a process it calls “chainwalking” to gain insight into the impact of on- and off-chain activities on holders, miners, voters and token holders. This data is curated and made freely available to analysts.

2. Decent DAO is the first decentralized web3 venture studio, launched in collaboration with heavy hitters in DeFi with the aim of transforming venture capital (equity 💵)

  • Web3-focused venture studio Decent Labs, GSR, BlockTower Capital, Cumberland DRW, OP Crypto, Digital Currency Group, 1kx, and others announce the close of their initial on-chain investment of $10 million to launch Decent DAO, valued at $56 million.

Portfolio Breakdown

DCG

Below is a thematic view of DCG's investments by:

  1. Category (ex: infrastructure vs. finance companies)
  2. Company type (ex: payments vs. NFTs and digital ownership companies)
  3. Layer (ex: L1 vs. L2)
  4. Blockchain (ex: Eth vs. Solana)

#1 Investments by category

DCG's investments by category

#2 Investments by company type

DCG's investments by Company Type

#3 Investments by layer

DCG's investments by layer

#4 Investments by blockchain

DCG's investments by blockchain

Most interesting portfolio company 📈

Flipside Crypto
  • Elevator ⚡️: Flipside Crypto provides blockchain analytics and business intelligence to crypto companies through a very unique model that lets anyone, like you and me, sign up to answer specific questions about protocols and chains, and get paid for it.    
  • How does it work: Each week, Flipside sources questions from community members and turns them into bounties. People like you and I, are rewarded for creating data dashboards that successfully answer those questions.
  • Example bounty questions:
NFTs on Solana - How many NFTs have been minted over the past week? Since the beginning of December, how many NFTs have been minted per week?
Cross usage in Solana Defi - How much cross-usage across platforms is there in the Solana ecosystem between the following protocols?: Orca, Mango Markets, Raydium, Saber, Friktion.
Solana staker activity - How many SOL stakers interacted with DeFi protocols over the past month? Which protocols are they interacting most with?

Example Bounties

example bounty #1
example bounty #2
  • Key insight 🕵️‍♂️: Ultimately, Flipside can understand how different activities on- and off-chain impact the price of an asset. By tracking things like voting patterns, developer activity, and users’ trading habits, they hope to understand how these events correlate with increased token prices.
  • Advantages 👍: Companies can use Flipside crypto, and by extension, anyone in the crypto community, to answer pressing questions that help inform their strategy and business decisions. The model creates a win-win for everyone involved: companies get data and answers, Flipside makes money, and the crypto ecosystem benefits from a more informed population (that's slightly richer).

Individual portfolio company data

Tokens available from DCG backed companies

Feedback

Let us know what you think here!


💡
Next week we break down USV (Union Square Ventures), a fund with well known names in venture like Albert Wenger and Fred Wilson who seeded public companies like Coinbase, Twitter, Twilio, etc.