Chapter One, an LA-based enterprise agency which just lately introduced a $40 million crypto fund, is in search of methods to distinguish itself within the crowded crypto VC world. Its latest effort known as Chapter One Studios, a six-month incubator program which can present three crypto startups with million-dollar checks and in-house steering towards realizing their visions.
The agency, led by former Tinder product chief Jeff Morris Jr., has shifted from a extra generalist vertical curiosity towards web3 obsession over the previous a number of months, as early bets in crypto startups like Dapper and Compound Finance have taken off. Chapter One’s embrace of web3 accompanies a broader development of smaller operator-led funds cozying as much as crypto. The agency has aimed to make use of its design-centric method to carve out a distinct segment for it in a flock of corporations that are more and more bulking up on technical expertise with a view to woo crypto founders.
“Whereas there are numerous funds that take part in issues like governance or liquidity or market making, there wasn’t a fund that was fully targeted on usability and making crypto extra accessible,” Morris Jr. says.
Their new Studios initiative is a giant a part of this new framing. Morris Jr. says one objective of this system is to offer small groups the sources to succeed in product market match with out having to fret in regards to the stresses of fundraising. Founders will obtain $1 million in funding for a 15% stake of their firms. Notably, this system is barely accepting three groups for this primary batch.
The six-month program will kick off in April after accepting purposes for the following month or so. Whereas startups could have the choice of working from Chapter One’s LA workplace, the agency says they’re anticipating curiosity from firms working remotely as properly.
Chapter One’s leaders say they’re accepting candidates from throughout the web3 ecosystem, however they’ve laid out a number of specific verticals they’re particularly inquisitive about as a agency, together with merchandise targeted on identification, client purposes, cross-chain interoperability and pockets & developer infrastructure.
The agency has already backed a handful of gamers in these areas, together with MoonPay, Syndicate, The Graph and Dharma, which was just lately acquired by OpenSea.
Because the fabled Y Combinator balloons in measurement, competing packages have tried nearly every part to distinguish and discover their inroad to chip away on the group’s supremacy. For its half, Chapter One appears to be purposefully framing itself as an incubator versus an accelerator to enchantment to a distinct sort of applicant, however the agency’s leaders additionally appear to be in contact with the benefits they maintain over YC as a extra intimate program.
“It’s going to be a six-month interval the place we mainly throw every part we’ve at firms,” Chapter One’s Menelaos Mazakaris says. “We designed this program with a founder lens in thoughts. Like, in the event you’re a founder, would you need to undergo a 400-person batch the place you’ve gotten a really mild contact with the precise group that’s serving to run the programming? Right here, we’re actually making an attempt to construct generational firms by working with them for six months after which staying deeply in contact.”