Varys Capital

David Jeong is one of the most brilliant and capable founders I’ve had the honor of not only meeting, but supporting. Varys Capital is proud to stand behind tread.fi. Sitting at the helm of tread.fi with his storied and tested background hailing from his time at Morgan Stanley to overcoming challenges that would crush most people, his vision and incredible capacity to execute on various directives simultaneously, without ever compromising on quality is something to marvel. This is a company to keep your eyes on.

Stablecoins: Perfectly Balanced, As All Things Should Be Money has served as the cornerstone of economic systems for millennia, evolving first from tangible items to today's digital forms. This progression mirrors continuous efforts to enhance transactional efficiency, security, and reliability across an increasingly intricate globalized economy. A pivotal moment in financial history was... https://lnkd.in/erMZG4BZ

FundRock and Varys Capital Join Forces in the UAE The registration of Varys Capital Ventures (CEIC) was a joint effort executed by FundRock Investment Management Service (ME) Ltd. and Varys Capital, a Cayman-registered company. FundRock, an Apex Group Ltd company, is a leading independent UCITS Management Company and Alternative Investment Fund Manager (AIFM). FundRock is based in the Abu Dhabi Global Market (“ADGM”), one of the world’s fastest-growing financial centers. As a fully authorized ManCo for Qualified Investor Funds and Exempt Funds, they were an ideal partner and currently serve as our domestic investment manager. FundRock ME’s ADGM license permits the following activities: * Managing a Collective Investment Fund * Arranging deals in investments * Managing assets * Advising on investments or credit Matthew Pykstra, CFA, FRM, Senior Executive Officer at FundRock, and Darius Askaripour, Managing Partner at Varys Capital, discuss the fruitful union.

We’re thrilled to launch support for Berachain and its new V2 bArtio testnet.  Nirvana Cloud is live in the Berachain ecosystem, supporting its testnet with a fleet of RPC full and archive nodes dispersed across our global cloud hubs. To get started building on Berachain today, navigate over to Nirvana’s Node Offerings here: https://lnkd.in/grxHNCje This is a monumental step in Berachain’s journey to a mainnet rollout later this year. Proof-of-Liquidity is a novel consensus mechanism that aims to align network incentives for Berachain validators, ecosystem projects, and everyday users. bArtio utilises BeaconKit, a framework developed by Berachain, for building modular L1/L2 blockchains. Nirvana is super pumped to be a part of the journey! Adam Lee

Accruing Endless Dividends Through Domestic Contributions The connective tissue between business and authenticity can always be traced back to relationships. The social aspect of growing a company is one of the most challenging landscapes to navigate. Juggling balance sheets and your sanity requires a strong support system that takes years to build, as it happens one handshake, one conversation, and one shared idea at a time. As a founder, you must contend with a nonstop barrage of challenges. This is the path of an operator. This is the path of a visionary cutting a lane through an often congested thoroughfare. It’s never a straight line, as the road is full of potholes and detours, and is constantly under construction.  Varys Capital didn’t decide to set up shop in the UAE solely based on the endless attractants, rather, it was a region full of infinite possibilities. This one dynamic has helped us shape multiple directives supporting the GCC region: Community: Support the local community by molding the next generation of founders through all aspects of the entrepreneurial journey. Hire locally. This is important for laying roots in a region and contributing to the local economy. People are flocking to the UAE in droves, and the talent pool is evolving at neck-breaking speeds. Incentivizing movers and shakers while rewarding creativity is truly one of the most rewarding aspects of running an enterprise. Invest locally. We expect to support local projects and companies through close associations with existing and newly emerging incubators. Our deal flow channels are well-established throughout the GCC, and we intend to fund the next wave of brilliant founders. We are thrilled to see what the future holds for the nation of UAE and hope to make significant contributions to the exemplary vision shared by the nation’s innovative leaders. Varys Capital

Milliseconds and Unicorns: Why Would a Venture Fund Care About Latency? Varys Capital has two distinct funds: VARVCF, an early-stage, equity-focused venture capital fund, and VARDFI, a delta-neutral high-frequency quantitative trading fund. So, how does quantitative infrastructure and execution benefit venture capital investments? The answer centers around equity plus a token warrant, one of venture capital's most common investment structures within blockchain. Token warrants in the realm of cryptocurrency are comparable to options in traditional stock markets. These are essentially agreements that confer upon investors the right, but not the obligation, to purchase a specified amount of cryptocurrency tokens at an agreed-upon price at a future date. The role of token warrants in tokenomics is multifaceted. 1. Firstly, they can be used to manage the supply of tokens. By offering warrants, a project can control how many tokens are circulating at any given time. This is crucial because the availability of tokens directly affects their value – generally, the scarcer the token, the higher its potential value. 2. Secondly, token warrants influence investor behavior. By providing the option to purchase tokens at a predetermined price in the future, warrants can encourage early investment in a project. This early investment is often critical for developing and succeeding new blockchain projects. It also creates a sense of confidence and commitment among investors, as they have a stake in the project's future success. 3. Moreover, token warrants can impact the demand for tokens. They create an additional layer of interest in the token, as investors who hold warrants are likely to follow the project's progress closely. This increased interest can lead to higher demand for the tokens once they are available, potentially driving up their value. One valuable insight is that securing these tokens as a priced-in add-on for capital contribution is not uncommon, especially in early stages (e.g., pre-seed, seed). This is done to incentivize capital contributions and align interests. Varys Capital

Silicon Valley Meets The City of Gold The United Arab Emirates' venture capital market is experiencing a surge in funding for tech startups, fueled by government initiatives and an entrepreneurial ecosystem. The total capital raised in 2024 is projected to exceed US$1.1B. Early-stage investment dominates the country, with a projected market volume of US$0.6b this year alone. Investors in the UAE are increasingly turning to venture capital to diversify their investment portfolios and seek higher returns. This is driven by a growing awareness of the potential for high-growth startups to disrupt traditional industries and create significant value. Blockchain initiatives are rife with advantageous developments, further closing the chasm between traditional finance and distributed ledger technology (DLT) applications. Additionally, investors are attracted to the potential for early-stage investments to generate outsized returns and the opportunity to support innovation and entrepreneurship in the region. The UAE has several unique characteristics that contribute to its flourishing VC market. 1. Its strategic location is a gateway between East and West, attracting international investors and providing access to various markets. 2. The country strongly focuses on diversifying its economy away from oil and gas, leading to increased investment in sectors such as technology and innovation. Blockchain/Web3 sits right at this perfect intersection. 3. The government launched various funding programs and initiatives to support early-stage startups and encourage investment in the sector. 4. According to the Ministry of Economy, the UAE has more than 400,000 registered SMEs, contributing to 52% of the non-oil GDP and 86% of the total employment in the country. The UAE also has more than 100 incubators and accelerators, which provide mentorship, funding, and networking opportunities for startups and entrepreneurs. 5. According to the National Agenda for Entrepreneurship and SMEs, the UAE aims to increase its startups to one million, incubate ten unicorn startups, and achieve a strong partnership between the public and private sectors by 2030. The National Agenda also includes 29 initiatives and incentives to enhance the business environment and entrepreneurial mindset in the UAE, such as simplifying procedures, reducing fees, providing grants, and facilitating access to markets and finance. The country has a stable and diversified economy, with a strong focus on sectors such as tourism, real estate, and financial services. This provides a solid foundation for investment and supports the growth of startups and innovative businesses. Additionally, the United Arab Emirates has a young and dynamic population with a high level of digital literacy and a strong entrepreneurial spirit. This creates a fertile environment for innovative startups and attracts local and international investors alike. Varys Capital

Varys Capital is thrilled to be supporting Blueberry Composable Corp to build DeFi’s most flexible prime brokerage platform accompanied by a fully composable and compliant yield bearing stablecoin backed by U.S. treasuries. Through its product offerings: Blueberry Core, Bloom, and StakeUp, Blueberry is introducing a value flywheel for DeFi users, decentralized autonomous organizations (DAOs), and institutions to maximize on-chain yields. Read more here: https://lnkd.in/e-N_552Q

Is The Abu Dhabi Global Market (ADGM) All It’s Cracked Up to Be? Coined the “Capital of Capitals,” Abu Dhabi is the ideal domain for entities looking to register in the UAE, and with good reason. With 1,905 registered entities, 291 of which are associated with financial services, the workforce grew to over 25,000 individuals, and 71% of companies anticipate an expansion. ADGM's commitment to excellence drives a remarkable 211% surge in AUM in Q1 2024, with 107 managers overseeing 137 funds and a 30% growth in operational entities, reinforcing its status as a leading international financial hub. As a sign of the future and to address the demand for blockchain-related services and innovation, Abu Dhabi Global Market (ADGM) partnered with the Solana Foundation.  One of the best experiences working with the regulator was the ease with which you can communicate with key personnel and the fact that they constantly seek opinions on how to service and accommodate a wide array of businesses directly from operators. Varys Capital

What Can Santa Claus and Traffic Tell Us About Growth Potential in a Market? Despite bold predictions and forecasts, the UAE's growth trajectory is unfathomable. As mentioned by Reuters, the United Arab Emirates' (UAE) economy grew 4.3% year-on-year in the fourth quarter of 2023. The country’s high scores for quality of life, management remuneration, health infrastructure, quality of education, and labor force growth make it an attractive place for skilled workers worldwide. The Economic Integration Committee, led by Minister of Economy Abdulla bin Touq, is developing new laws and initiatives to help emerging sectors  – from renewable energy to artificial intelligence – grow their contribution to GDP and create more jobs, state-run news agency WAM reported. “Today, the UAE is seen as a pioneer in empowering the new economy sectors, most notably renewable energy, advanced financial technology, artificial intelligence, the Fourth Industrial Revolution, entrepreneurship and space,” bin Touq said. He added that the country had made a “tremendous breakthrough” in developing a knowledge-based economic model, diversifying its economy and boosting its global competitiveness. The International Monetary Fund has raised its preliminary forecast for GDP growth in 2024 to 4% from the 3.5% projected in its last Regional Economic Outlook report published in April. A Reuters poll of economists in April also forecast the UAE's GDP growth at 4% in 2024, the fastest among Gulf peers. So, how does this growth capacity benefit blockchain-enabled technology? One of the most interesting predictors of where the nation is heading can be experienced in classrooms. Darràch (Dara) Campbell, Head of Middle East Affairs, shares some insights into his daughter's peculiar request at Christmas. Varys Capital