I Talked to 80+ Crypto Hedge Funds and Found 3 Proven Strategies to Raise Capital in 2023
<p dir="ltr">The rapidly changing world of crypto investments has reshaped how investors think and how fundraisers navigate this market. In this article, I will share three proven strategies for raising capital from crypto hedge funds.</p><p dir="ltr">I am Isaac Joshua, a fundraiser at Silver Castle, a publicly traded digital assets investment group. I have five years of experience in sales in the crypto industry, and in the past five months (March-August), I have engaged in valuable conversations with over 80 crypto hedge funds. These talks were a crucial part of my journey to raise capital for our hedge funds. Importantly, I also reached out to Funds of Funds and other crypto funds that invest in crypto-native hedge funds like Silver Castle. The following strategies allowed us to grow our Assets under Management (AUM) by 47% during the bear market of 2022, despite a 65% decrease in BTC.</p><p dir="ltr">1. Mastering Risk Management for Success</p><p dir="ltr">The crypto market is known for its volatility, so it is essential for <a href="https://www.financemagnates.com/cryptocurrency/news/bill-millers-hedge-fund-plans-to-buy-400-million-in-bitcoin/">crypto hedge funds</a> to have strong risk management practices in place. This includes being transparent, compliant, and operationally strong. Investors want to be confident that their money is safe, so it is important to build trust through these actions.</p><p dir="ltr">The PwC and Coinshares 5th Annual Global Crypto Hedge Fund Report 2023 ('Rebuilding Confidence in Crypto') found that crypto hedge funds are placing increased importance on platform security when selecting a trading venue. The report also found that 53% of crypto hedge funds have taken action to update their counterparty risk management processes.</p><p dir="ltr">Silver Castle takes this a step further by having insurance from Lloyds of London on our BTC held in the funds, which takes the operational/counterparty risk to 0%.</p><blockquote><p lang="en" dir="ltr">VC shifts focus: AI in, Crypto out? hat does this mean for the future of crypto?In Q2 2023, global crypto venture funding fell by 49% compared to the same period in 2022.Crypto: A Sector Regrouping
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