TenSquared (10SQ) is a growth equity firm focused on Inflection Point Investing where blockchain and Web3 companies transform into future technology leaders
- Focused exclusively on blockchain and Web3 which fuel the transition to the next era of technology – a distributed, decentralized, individually-empowered future
- Invests in "pipes, picks, and shovels" businesses that enable blockchains to connect with consumers and legacy systems
- Leverages its extensive tribal knowledge, deep network, and operating portfolio to access hard-to-procure private investment opportunities in industry-leading companies
- Process driven in underwriting, due diligence, and execution to maintain price discipline and mitigate embedded risks in an evolving space
- Believes many of its portfolio companies may ultimately go public and transform into future technology leaders
- Is a values-driven firm with an entrepreneurial, research-focused investment culture
Areas of Focus
Sectors most leveraged to adoption and ubiquity of digital assets.
Infrastructure, Developer Tools, Security
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DePINs and Functional Networks
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Data Analytics, Forensics, AI
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Consumer Apps, Entertainment & NFTs
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Financial Services & Tokenization
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We believe blockchain and Web3 businesses in these sectors may accrue the most value over the long term
Our Core Beliefs About The Future
It’s still early. Blockchains are slow and technically immature. This technology will improve 10^2 with time. Many native future use cases, that we cannot now foresee, will emerge and drive a wave of new consumers.
Generational Shifts:
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#1Digital assets will be ubiquitous - provenance and ownership will live permanently on a public ledger in a multi-chain world
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#2Trillions of dollars of traditional assets being tokenized will provide further on-ramps into the crypto economy
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#3In the future full of immersive digital worlds, digital currencies will be the primary method of transaction and NFTs will become a major gateway for millions of consumers to enter the Web3 ecosystem
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#4In a world of intelligent machines (AI) blockchains will deliver authenticity and privacy; AI and blockchains will complement each other
These generational shifts will require extensive innovation in Web3 tooling, infrastructure, and services – a vast universe of private digital asset companies is emerging
Investment Criteria
Conviction comes from our research-driven investment culture. We are analysts first.
Our M8 Investment Framework
1
Myth
- Focus on high-quality blue-chip leaders and emerging contenders
- Aligned with our thesis and driven by unique insight
2
Market
- Proven, expanding, well-defined, well-understood TAM
3
Moment
- At the inflection point of growth
- With near-term catalyst
- Benefitting from macroeconomic tailwinds
4
Moat
- Differentiated strategy
- Sustainable competitive advantages
- Proven technology
5
Model
- Cash flow driven analysis
- Positive unit economics
- First-hand due diligence
6
Management
- Management integrity, experience, quality, adaptability, depth
7
Mitigants
- Identify and price risks
- Manage downside: governance, preference, price
8
Moneyness
- Sources of value
- Excess risk-adjusted return
- Potential to exit in medium-term
Portfolio
Building a diversified portfolio of blue-chip private companies that align with our Areas of Focus.
Active
Company
Description
Location
Year
Domain
Stage
Website
Careers
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The largest blockchain platform, offering nodes & APIs, staking and wallet infrastructureLos Angeles2023Infrastructure, Developer Tools, SecurityGrowth
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Leading provider of digital asset staking infrastructure for proof-of-stake blockchains. Serving 250+ institutional clientsToronto2023Infrastructure, Developer Tools, SecurityGrowth
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The top institutional-grade end-to-end crypto trading infrastructure provider with deep roots in traditional marketsNew York2023Financial Services & TokenizationGrowth
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Leading provider of next-gen enterprise-level loyalty & integrated commerce solutions that utilize blockchain and gamificationMiami2024Consumer Apps, Entertainment & NFTsGrowth
Latest Insights
Team
Who We Are
We are a values driven firm: in service of our investor partners (LPs) and our investee companies.
Our Purpose
To be a world-class capital partner of choice that expedites the adoption of the blockchain and Web3 ecosystem and delivers value beyond dollars.
Our Mission
To provide value-added capital to accelerate growth, exponential—generating exceptional risk-adjusted returns for our Investor Partners.
Our Vision
We strive to become the preeminent investment firm advancing the expansion of distributed technology and digital assets.
Our Values
Creativity:
We are open-minded, curious and take a variant view to capture unique insight. Chance favors the prepared mind.
Intellectual Honesty:
We have a command of the facts, run a thorough process, make measurable decisions, and support robust, transparent discourse where challenge is always welcome
Excellence in Execution:
We operate collaboratively, with integrity, at the highest professional standard to deliver extraordinary results.
Winning:
We have a bias for action; we act with conviction, are persistent, and compete hard as a team.
