On the latest episode of More Than Money, Dr. Kurt Overley talked to CoinGeek’s Patrick Thompson about investing in the blockchain industry, the value of marketing, and what Web 3.0 is.
Introducing Dr. Kurt Overley
Dr. Overley introduces himself as the co-founder of Coruscant LLC Family Office. He and his brother founded it, and both are Wall Street veterans with long investing track records. He says he’s “happy to be here and to be invested in some of the great companies building on Bitcoin SV.”
What value can family offices and VCs bring to entrepreneurs building on blockchains?
Dr. Overley notes that blockchain is a very “engineer-heavy ecosystem.” He points out that while engineers can be great at creating products, they don’t always know how to run or market a business.
In his view, Bitcoin SV is a lot less hype-driven and tends to be solutions driven. However, he says that the “if you build it, they will come” strategy is, in his extensive experience, terrible. This is where business experts such as family offices and VCs can add value.
How do those building products and services on BSV get outsiders to come in?
Dr. Overley says this is where family offices can come in. Many of them have built successful businesses and can provide extra capital to hire marketing talent to deal with client acquisition. This capital can also buy strategic advice and consulting from what he calls “people with gray hair.”
Are businesses having difficulty raising funds right now? Are VCs themselves struggling to raise capital?
Thompson points to the ongoing economic issues facing the world right now and asks whether this is causing businesses or VC firms to struggle with raising funds.
“It’s definitely an issue, unfortunately, although it shouldn’t be,” Dr. Overley says. He believes that because Bitcoin SV is about enterprise software solutions, this shouldn’t be a problem because the ecosystem isn’t about “here’s a flashy crypto and number goes up.” That said, he reiterates that it is an issue right now because pockets of wealth and resources have been severely impacted by what’s going on globally, which impacts allocator’s wallets.
How did Dr. Overley find his way to the Bitcoin SV ecosystem?
Dr. Overley explains how he and his team actively go out and attend investor conferences to seek out opportunities and scan for interesting new ideas.
At one of these conferences, he met Unbounded Capital, and he liked their contrarian thesis and focused on building real value. He was impressed by their view on BSV being a universal source of truth and its micropayments capabilities, and he thought these could be disruptive.
“I’ve been in the financial markets for more than three decades, and I’ve never come across anything that remotely compares, in my estimation, to the disruptive things that are going to happen around using this Bitcoin SV technology,” Dr. Overley says.
What is Dr. Overley seeing today regarding the companies trying to raise capital?
Thompson says he feels family offices and VCs have a unique vantage point to see what’s going on in the industry at any given time since they likely have companies coming to them to ask for investment. He asks what trends or patterns Dr. Overley sees today.
“I see less DeFi. I think there’s now more of a focus on Web 3.0, content ownership…and gaming,” he says.
Drilling down on gaming, Thompson notes that gaming is the application many hope could lead to mass adoption. He asks if there are any trends or patterns within that niche.
“There’s just a huge amount of development going on,” Dr. Overley says, noting that a lot of it is blockchain related. His family office invests in a fund specifically focused on gaming, but he says that, to his regret, that fund doesn’t have a lot of Bitcoin SV investments yet.
How would Dr. Overley describe Web 3.0?
Thompson says he has heard so many people give so many different views and opinions on this concept, and he’s interested to hear how Dr. Overley defines it.
Dr. Overley’s response is a unique one that highlights an important element of Web 3.0. He says that Web 1.0 was read-only, Web 2.0 was read and write, and Web 3.0 added ownership. “That’s where NFTs come in, and it’s where play-to-earn comes into it,” he says.
Giving a concrete example of what he means, Dr. Overley says his own children have spent a shocking amount of his money on skins and in-game items on popular games like Fortnite. He believes that giving players ownership over those items and enabling them to trade is revolutionary.
Are there any BSV companies in Coruscant’s portfolio? If so, why did they decide to invest?
“We’re broadly exposed to a lot of Bitcoin SV companies,” Dr. Overley replies, explaining how he’s an investor in Unbounded Capital. Aside from that, they have direct investments in UNISOT and NFTY Jigs.
Digging deeper, Thompson wants to know what green flags Dr. Overley looks for and whether he has any tips for VCs, investors, and family offices who want to invest in the industry.
Dr. Overley emphasizes that they see a lot of pitches. They’re interested in addressable market share and having a great idea, but they want to see a product that’s at least ready for beta testing. He says that while they have invested in pre-revenue companies before, they generally expect to see clients and revenues.
Thompson asks whether Dr. Overley has an opinion on fundraising and issuing equity by issuing tokens. He replies that he has seen it, but he’s skeptical and would much rather own a real economic stake in the business. That said, he encourages entrepreneurs to take advantage of the demand for such tokens.
Does Dr. Overley have a general takeaway for viewers?
Dr. Overley replies that he and his firm would love to compare notes with others in the space. He says they’re always looking for interesting ideas and opportunities from fellow investors and entrepreneurs, so he’d like to hear from both.
Key takeaways from this episode of More Than Money
- Engineers need legitimate marketing teams and strategies.
- Equity is best, but there’s a strong demand and unique benefits in coin and token offerings.
- Investors prefer finished products that generate revenue.
Watch: The BSV Global Blockchain Convention panel, Tokenizing Assets & Securities on Blockchain
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