Invest Like The Best
Episode 420 Investing at the Frontier
Invest Like The Best

Episode 420: Investing at the Frontier

Invest Like The Best

Episode 420

Investing at the Frontier

Matt Huang is the co-founder of Paradigm. We cover the building blocks of Paradigm's highly technical investing approach, how navigating illegible frontiers leads to outsized returns, and why crypto plays an important role in preserving economic freedoms.

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Show Notes:

(00:00:00) Welcome to Invest Like the Best

(00:06:15) Matt Huang's College Years and Early Career

(00:12:27) The Failed Startup and Lessons Learned

(00:16:51) Matt's Pivotal Trip to China and ByteDance Investment

(00:25:58) Sequoia's Culture of High Standards

(00:32:51) Discovering Bitcoin and Crypto

(00:39:33) Founding Paradigm

(00:45:40) Building a Unique Investment Team

(00:48:03) Challenges and Volatility in Crypto

(00:53:10) The Relationship Between Legibility and Investing

(00:58:40) Crypto as a New Financial System

(01:05:19) The Importance of Stablecoins

(01:09:54) AI and Crypto: The Next Frontier

(01:16:19) Personal Motivations and Important Crypto Use Cases

(01:29:23) The State of Regulation in Crypto

(01:32:27) The Kindest Thing Anyone Has Ever Done for Matt

Investing at the Frontier

Introduction

Patrick
My guest today is Matt Huang, co-founder of Paradigm, a leading crypto investment firm with over $12 billion in assets under management. Before launching Paradigm in 2018 with Coinbase co-founder Fred Ehrsam, Matt was a partner at Sequoia Capital, where he led many of the firm's crypto investments. It is widely reported that Michael Moritz called Matt the only regrettable loss in Sequoia's history.

In our conversation, Matt shares his framework for navigating the often illegible frontier of crypto, how his early investment in ByteDance – now worth 10,000 times his initial capital – shaped his approach to identifying exceptional founders, and why he believes so deeply in crypto's long-term potential. His firm, Paradigm, not only invests in many of the leading companies in the industry, it also builds open source tools used by most of the crypto world.

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