Solana Weekly #107- Investing Through Multiple Crypto Cycles With Aly From Blockchain Founders Fund
Podcast Show Notes: Solana Weekly with Aly from Blockchain Founders FundHost: Thomas BahamasGuest: Aly Madhavji, Managing Partner at Blockchain Founders FundDate: March 19, 2025Overview: In this episode of Solana Weekly, Thomas sits down with Aly Madhavji, a seasoned investor and managing partner at Blockchain Founders Fund, to explore the investment landscape of crypto, with a deep dive into Solana’s ecosystem. Aly shares insights from his eight years of experience, discussing market cycles, investment strategies, and emerging trends in Web3, including tooling, real-world assets (RWAs), fintech, and the intersection of AI and blockchain.Key Discussion Points:* The Crypto Market Rollercoaster* Aly reflects on the volatility of crypto markets, referencing recent events like Trump’s announcements causing 25% surges followed by sharp declines.* “There are no days off in crypto,” Aly notes, highlighting the fast-paced nature of the industry.* Investment Philosophy: Founders First, Themes Second* Aly emphasizes investing in exceptional founders who bring world-class practices to crypto, even if their focus isn’t his top thematic priority.* Key investment themes:* Infrastructure: Early bets like Solana at 18 cents showcase the potential of Layer 1s, though Aly sees diminishing returns for new L1s. Innovations like Bearchain’s proof of liquidity still intrigue him.* Tooling: A critical gap in Web3, with inefficiencies plaguing developers. Companies like Uniblock (API aggregation) and Validation Cloud (node infrastructure) are solving real problems.* Real-World Assets (RWAs): From advising Polymath eight years ago to seeing BlackRock’s Larry Fink push tokenization, Aly sees RWAs gaining traction, with startups like Zoth (on-chain yields) and Asterism (RWA infra) leading the charge.* Fintech & Payments: This cycle features profitable companies, a shift from past bull runs. Stablecoin payments and remittances are ripe for growth, with examples like Mastercard settling a third of transactions on a private blockchain.* The State of Solana* Aly praises Solana’s rise, noting its speed and user base make it a focal point for builders. Every company now considers a “Solana strategy.”* The recent U.S. strategic reserve announcement including Solana underscores its growing prominence.* Challenges in Crypto Investing* Value Extraction vs. Value Creation: Aly critiques short-term “cash grab” token launches and meme coin hype, advocating for sustainable businesses that grow the pie for everyone.* The Death Spiral: Poorly executed token launches can tank even great companies, a phenomenon Aly calls the “death spiral.”* Retail Fairness: Aly pushes for retail investors to access deals at VC prices, citing platforms like Echo and CoinList as steps toward democratization.* VC Process Unveiled* Blockchain Founders Fund reviews 300–500 companies monthly, sourced from events, online submissions, and a network of 410 funds.* Quick filtering (deck reviews in minutes) narrows the pool, followed by calls and a rating system assessing traction, team, and value-for-money.* Aly’s tip for founders: Nail your pitch in 11 seconds, 30 seconds, and 90 seconds—anything longer risks losing interest.* Emerging Trends & Innovations* AI & Blockchain: Hype around AI agents is overstated, but legitimate projects like Virtuals show promise.* Decentralized Systems: Aly highlights Unit Network, which tokenizes business ownership with transparent treasuries, and DEAN, a decentralized insurance network—both vital for a hyper-decentralized future.* Meme Coins with Substance: Could real businesses disguise themselves as meme coins for fun and fundamentals? Aly sees potential in this hybrid model.* Long-Term Vision* Aly’s 10-year fund horizon reflects a belief in building enduring companies, not quick flips. He contrasts this with short-term token funds and founders vesting in a year.* “Great things take time,” Aly says, urging focus on consistent progress over flashy launches.* U.S. Crypto Renaissance* Dropped lawsuits and lighter regulations are revitalizing the U.S. crypto scene, keeping talent stateside and reversing the exodus seen in places like Canada (Ethereum’s origin).Guest Contact:* Twitter/X: @Aly_Madhavji* Website: Blockchain Founders Fund* Aly welcomes startup pitches—submit via the website or reach out directly!Closing Thoughts:Thomas wraps up with gratitude to Aly for shedding light on crypto investing and a call to listeners to subscribe, review, and shill their bags. “This isn’t financial advice, but let’s accelerate and get this bag!” Get full access to The Dramas of Thomas Bahamas at thomasbahamas.substack.com/subscribe
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