Red Beard Ventures is a venture capital firm focused on Web3 and crypto. Their mission is to push humanity forward through innovation and decentralization.
While they’re focused on early-stage Web3 and crypto companies, their portfolio spans a variety of industries like infrastructure, life sciences, robotics, and more. Basically, they’re investing in tech of the future that puts power into everyday people’s hands–from engineers to athletes.
We sat down with 30 under 30 partner Elana Gold to give you the insider scoop.
The Founders and Their Vision
Red Beard Ventures was founded over five years ago, beginning as a syndicate. Elana Gold, with a background in strategy consulting at KPMG and Deloitte, transitioned to the startup world through Floqast, where she worked on accounting and financial automation.
On the side, Elana started following different syndicates. She made her first major investment in SpaceX at a $30 billion valuation, proving she had a serious knack for identifying high-potential opportunities.
Elana explains her shift into venture capital: “I was deeply interested in investing and crypto for years. Meeting Drew was the catalyst to fully immerse myself in this space, and together, we’ve built something truly unique.”
Her co-founder, Drew Austin, is a serial entrepreneur with experience in AI recruiting, Google Glassware, and NFT projects. Drew’s entrepreneurial spirit and innovative thinking have been pivotal in shaping Red Beard’s mission and strategy.
Investment Thesis and Focus Areas
Red Beard Ventures operates across three distinct pillars:
1. Syndicate Model: This model allows the firm to invest on a deal-by-deal basis, targeting opportunities in sports (e.g., Major League Pickleball), climate tech, robotics, and biotech. Notable investments include: Anduril, Venus Aerospace, Layerzero, Unstoppable Domains, Firehawk Aerospace, Terran Biosciences, and more.
This fund has also supported companies like Saga, Trufiation, Wilder World, Hytopia, and Airstack.
Elana explains, “The syndicate lets us do a broad range of investments. We can do any stage and any sector while also allowing our LPs to follow on to fund investments that are raising investment rounds at a later stage.”
2. Fund Management: The firm launched its first $25 million pre-seed Web3 fund in 2022, emphasizing equity and token investments. This fund has supported companies like Layer Zero and Unstopabble Domains. According to Elana, “With this fund, we’re able to invest in the best founders and projects, even in a bear market.”
3. Denari Labs Accelerator: Designed to help startups launch tokens from the ground up, this accelerator provides strategic guidance on tokenomics, market makers, and go-to-market strategies. It has supported 22 companies to date, with plans to invest $100,000 in 100 accelerator startups through its second fund.
“Denari Labs is our superpower,” says Elana. “We’re builders at heart, and we’re able to provide hands-on support to help companies grow and succeed.”
Red Beard Ventures is now raising a $40 million second fund, focusing on decentralized AI. They’re also interested in gaming. Examples include Wilder World, Hytopia, and DePIn.
The fund’s breakdown includes 20% for accelerator companies, 30% for OTC token deals, and 50% for traditional equity and token investments.
Why Founders Should Work with Red Beard Ventures
Red Beard Ventures offers more than just capital. Founders gain access to:
- Extensive Networks: “We have a portfolio of over 200 companies,” Elana highlights. “We’re constantly connecting founders with others in our network to create opportunities.”
- Hands-On Support: Through Denari Labs, founders receive in-depth guidance on tokenomics, market strategies, and partnerships.
- Experienced Leadership: Elana and Drew’s combined backgrounds in consulting, entrepreneurship, and early-stage investing provide valuable insights for scaling startups.
- Innovative Approach: “We’re not just passive investors. We’re in the trenches with our founders, helping them tackle challenges and capitalize on opportunities,” Elana adds.
Geographic and Industry Focus
While Red Beard Ventures invests globally, its primary focus is on startups in the U.S., Europe, and Asia. Industries of interest include:
- Decentralized AI
- Gaming and NFTs: Examples include Wilder World and Hytopia.
- Frontier Tech: Investments in 3D printing and decentralized weather networks, such as 3DOS and WeatherXM.
Elana highlighted gaming as a key focus area: “Gaming could be the next wave of adoption. With blockchain rails, players can earn and monetize their time and assets, creating a whole new market.”
Traits Red Beard sees in Exceptional Founders and Companies
According to Elana Gold, founder-market fit is critical. “We look for founders who are deeply committed to their space, have a clear understanding of pain points, and possess a long-term vision,” she explains. Other key attributes include:
- A clear path to product-market fit, even if it’s in early stages.
- Robust tokenomics strategies and utility.
- Ability to onboard new users, bridging Web2 and Web3 ecosystems.
She adds, “A founder who is in it for the long haul and has a real reason to build in this space makes all the difference.”
Red Flags in Founders and Pitches
Potential concerns include:
- Lack of a clear path to product-market fit.
- Inflated tokenomics without sustainable utility.
- Insufficient understanding of the market or competitive landscape.
“Seeing a path to product-market fit is big for us,” Elana notes. “It’s important to understand the need and how the company plans to address it.”
Advice to Founders
When pitching to venture capitalists, Elana offers practical advice:
- Demonstrate Market Need: “Make sure there’s a big enough market and a clear roadmap to address it,” she advises.
- Bridge Web2 and Web3: “Focus on how to onboard new users into the space, not just catering to Web3 natives.”
- Be Transparent: “Share your tokenomics strategy and scalability plans clearly.”
- Launch Early: “Don’t wait for perfection. Launch early, iterate, and learn. The market rewards those who take action,” she emphasizes.
Elana also warns against overbuilding without market validation: “I’ve seen too many founders launch too late or build products that don’t address a real market need. Test your ideas and get user feedback early.”
For additional insights, check out The Players Company’s guide on fundraising.
The Future of Red Beard Ventures
As Red Beard Ventures raises its second fund and expands Denari Labs, the firm is well-positioned to capitalize on emerging opportunities in crypto and beyond. With a hands-on approach and a robust network, they are set to drive innovation and deliver exceptional returns for their investors.
“We are so well-positioned with our next fund to really drive it out of the park,” Elana says enthusiastically. “Denari Labs and our unique approach make us stand out, and I’m excited about where we’re headed.”
