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Bitcoin Private Equity
Two years ago, I wrote that we should see the rise of Bitcoin VC, which will be predominantly libertarian. This prediction, at least partially, has come true. There are multiple Bitcoin VCs now, and in my experience – they generally share libertarian values.
The next logical industry to develop is Bitcoin-native Private Equity. If you have built a successful Bitcoin business like an exchange, wallet, or custody solution, there will be companies specializing in buying up those businesses. Berkshire Hathaway is the most famous example of a firm in the traditional world. There are also boutique firms that emerged to replicate this model with internet companies.
There may not be a way to go public for Bitcoin companies, which creates demand for private exits. Traditional PE firms are unlikely to venture into Bitcoin, and some new firms will pop up if they are not already there.
Private Equity will fuel the returns for Bitcoin VCs, and this money will trickle down to fund more new startups.