Neoclassic Capital: New Crypto VC Firm

Updated May 16, 2024 2 min read

Neoclassic Capital: New Crypto VC Firm

Neoclassic Capital: New Crypto VC Firm

Neoclassic Capital: New Crypto VC Firm

A pair of former employees from Goldman Sachs and BlockTower Capital have launched a new virtual asset venture capital investment firm called Neoclassic Capital. The Miami-based company, co-founded by Michael Bucella and Steve Lee, aims to invest in both private and public crypto markets, focusing on areas such as derivatives, tokenization of real-world assets, entertainment, gaming, and social projects.

Since its launch in January 2024, Neoclassic Capital has received investments from prominent venture capitalists, including Marc Andreessen and Chris Dixon of Andreessen Horowitz (a16z), as well as Tampa Bay Lightning owner Jeff Vinik. The firm has also secured funding from global investors like L1 Digital AG, a Zurich-based investment advisor, and Genki Oda, an executive at SBI Holdings.

Learn more about tokenization: what is tokenization?

Bridging Western Crypto Enterprises with Asian Markets

One of Neoclassic Capital's primary goals is to connect Western crypto enterprises with markets in Japan, South Korea, Hong Kong, and other areas in Asia. Co-founder Michael Bucella highlighted the firm's expertise in these localized regions, stating that "There's a lot of the Western world that can't tap into these very localized regions, that's where the expertise of Neoclassic is."

The firm's focus on Asia comes at a time when family offices in the region are increasingly drawn to the crypto market, driven by surging global interest in virtual assets like Bitcoin (BTC) and Ethereum (ETH). Hong Kong-based family offices, in particular, have been actively investing in the crypto space, with some allocating up to 5% of their portfolios to virtual assets.

The recent approval of the first Bitcoin exchange-traded fund (ETF) in Hong Kong is expected to further boost interest in the region, as investors seek exposure to the virtual asset market. Neoclassic Capital's strategic focus on bridging Western crypto enterprises with Asian markets positions the firm to capitalize on this growing trend and facilitate cross-border investment opportunities.

Finding Real-World Use Cases Beyond Speculation

In an interview with Bloomberg, co-founder Steve Lee implied that Neoclassic Capital aims to back real products, noting that in the 2017 bull cycle, "99.9% were speculation." This sentiment aligns with the growing trend in the crypto industry to focus on projects with tangible use cases and real-world applications.

Michael Bucella, in a recent CNBC interview, discussed the current state of the cryptocurrency market, emphasizing that "Bitcoin is boring and that is its beauty." He argued that the stability and maturity of Bitcoin as an asset class is a positive development for the industry as a whole.

Expanding Investment Strategies

While the size of Neoclassic Capital's initial funding remains undisclosed, the firm plans to use the proceeds to launch various investment strategies, including hedge funds, growth equity, credit, and others in the future. This diversified approach demonstrates the firm's commitment to exploring a wide range of opportunities within the rapidly evolving virtual asset space.

The launch of Neoclassic Capital comes amidst a surge of interest in the crypto industry from traditional finance players and institutional investors. As more firms enter the space and focus on real-world applications of blockchain technology, the industry is likely to see increased legitimacy and mainstream adoption in the coming years.

With the backing of prominent Silicon Valley investors and a strong focus on bridging Western crypto enterprises with Asian markets, Neoclassic Capital is well-positioned to make a significant impact in the virtual asset investment landscape. As the firm continues to grow and expand its investment strategies, it will be interesting to observe how it navigates the challenges and opportunities presented by the ever-evolving crypto industry.