Vibe Capital October/November Update

Hi, and thanks for supporting Vibe Cap! You're receiving this because you're an LP in either the Q3 or Q4 fund. If you're not invested in the Q4 fund and would like to get exposure to the Q4 companies, please let me know :)

Table of Contents

New Investments

We had a flurry of activity since last update. Really excited about these companies, and I'll do my best to keep it brief as possible ;)

Ender (joinender.com)

image

Right now, Ender is simply a way for kids to perform education projects in Minecraft. In the future, Ender wants to empower kids to learn how to operate in the workforce by creating portfolios of projects - and paying them for it.

Ender capitalizes on a few rising themes - gaming becoming ubiquitous, pay to play mechanics in games, and alternative forms of education. (Homeschooling, remote, etc.)

Aside from the product and the market, I was very impressed with Gautam and the team's experience and thoughtfulness.

If you have kids who play Minecraft, or know people who have kids who play Minecraft, happy to get you an invite to the beta!

Circle Labs (circlelabs.xyz)

image

Circle Labs at its core is "Artificial Personalities as a Service". The Metaverse requires user-generated content at a massive scale, Circle Labs enables it through their AI.

Have a game with lots of non-player characters, but don't want to write their dialogue? Use Circle. Need chatbots to increase engagement in your discord server? Circle's got you covered. Just plug in to their API and ultra-customizeable, incredibly diverse and realistic dialogue is available to you.

This is a clear Metaverse play, with an all-in bet on an exponential proliferation of identities within the Metaverse.

Boost (boo.st)

image

What's the biggest point of friction in buying something on your phone? Going from that spark in your head of "want" to finalizing the purchase. Boost solves this.

Boost collapses the entire end-to-end e-commerce platform down to a single "tag" - what they are calling "the new barcode."

Try it for yourself below!

image

Aside from their simple solution to a gargantuan problem, the team is top-notch. Daniel Abas, the CEO, is a seasoned vet, and their cap table is littered with a who's who of tech investors, including Packy McCormick of Not Boring.

Serif (serif.space)

Serif is, in essence, the epitome of a contrarian investment. It's a social network that is meant for slow, thoughtful, carefully curated experiences, built by and for a small percentage of the population - the queer community. (This is actually a Q3 investment, but Serif didn't come out of stealth until recently πŸ³οΈβ€πŸŒˆ .)

Vibe's thesis is one of mass decentralization and thousands of separate narratives, identities, and spaces - leading to in the near future almost everyone feeling like the "other". As their first product, Serif leverages a methodical approach to cultivating belonging within a community that has always been "other", Serif can replicate this playbook for the millions who feel "displaced" in a massively volatile world.

image

This investment is also a huge bet on the founder, Brian, with whom I had a wonderful conversation with about the needs of the queer community while overlooking Dolores Park all the way back in May.

If you are queer, and ally, or know someone who may want explore the platform, let me know and I'll invite you to the beta!

Impulse (impulse.win)

Impluse's CEO, Marlon, has an effervescent presence on Twitter that solidifies his deep understanding of the community he is building for - digitally native, opinionated, and traditionally underrepresented in commerce.

The product is simple - answer questions in a "swiping" format, get entered to win dope shit. The seamless intersection of financialization, gaming, and aesthetic is effortlessly riding the upswing of the emergent behaviors and expectations of gen z.

Answers to these questions provide behavioral data that blows away any "survey" - and marketers eat it up.

Diamond DAO (diamonddao.xyz)

One of the coolest parts about Crypto is that everything is open source - meaning you can view in microscopic detail every single thing that happens on the blockchain.

Another incredibly cool thing about crypto is that it allows people to organize huge communities and large amounts of capital without centralized authorities, like governments or corporations. These new ways of organizing are called Decentralized Autonomous Organizations, or DAOs. (Primer here: https://www.readthegeneralist.com/briefing/dao)

So what's the downside to these two awesome primitives? With an exponentially increasing amount of data generated from blockchains, it's easy to "drown" in the sheer quantity and be unable to derive any insights from the data. DAOs incredibly early, but still up to their eyeballs in data.

Diamond Dao fixes this. By abstracting away the complexity of sifting through data and visualizing it to make it comprehensible, DiamondDAO unlocks orders of magnitudes of opportunity for anyone involved in the DAO ecosystem.

The founders (currently still at their day jobs, but leaving soon) have deep experience with Data Engineering and Data Visualization - the perfect fits to build this suite of software.

image

Portfolio Company Highlights

Pipedream Labs - [Redacted] (Confidential/Do Not Share)

Highlights

Angellist/Vibe Capital now accepts from LPs/funds companies in USDC.

This is awesome for speed of transfer of funds from either LP>Fund or Fund>Company.

Lowlights

Vibe Capital is on a waitlist to be approved by Circle (USDC creator) for LPs to contribute in USDC.

We have several LPs in the pipeline who will only contribute in USDC, and this is frustrating af. 😩

Fund Asks

We continue to look for LPs

Please let people know about Vibe Cap and intro me to potential LPs!

Portfolio Company Asks

The #1 way to add value as an LP is to help out portfolio cos. Lmk if you have any leads!

Impulse - Looking for Agency contacts

If you have connections with agencies like Interbrand, Ogilvy, Saatchi & Saatchi or the like, please reach out!

Pipdream Labs - Partnerships with delivery providers, and a Biz Dev person in the logistics/infrastructure/city tech spaces

Pipedream is looking to hire the best possible Business Development person in the logistics/infrastructure/city tech spaces.

Pipedream is also at the stage where they are starting to build partnerships in the with delivery providers (Uber Eats, Doordash, Nuro, drone delivery companies, tech savvy pizza companies, etc).

If you know someone who might be a good fit for the bizdev role, or have connections with delivery providers, please reach out toΒ garrett@pipedreamlabs.co.

Ender - Recruiting

Ender is looking to fill three positions in the coming months: a senior product designer, a senior full-stack software engineer, and a junior software engineer with experience in Java.

If you know of someone who is interested, have them take a look at the careers page:

Circle Labs - Connects for bizdev/customer discovery, recruiting

If you know anyone who may find Cirlce useful in their social offering for metaverse -- NFTs, content houses, VTubers, Virtual Beings, game devs, etc. - lmk!

Circle is also recruiting for a Community Manager for their Discord and a full-stack dev.

Market/Macro commentary

Olympus DAO/Klima DAO. TL;DR: Olympus DAO invented a new way to get sustainable 8000% APY.

These are two of the most fascinating projects I've come across in the past year.

Olympus is a crypto DeFi (Decentralized Finance) project that was started by a pseudonymous founder "Zeus" in April 2021.

πŸ’‘
A quick sidebar about "liquidity" in DeFi protocols (and financial products in general): Crypto/defi protocols generally need "liquidity" - or money in their treasury - to do the things that banks do (but digital) and make money. In many ways, DeFi is just a digital version of what a traditional bank does. In traditional banks you deposit US Dollars, the bank pools it together with 100,000 other people who deposit US Dollars, they loan out this big pool of money, and charge interest to make money. In "DeFi", everything is digital, so it goes much faster and is much more efficient. That's probably why you've seen crypto banks giving you 8% APY vs. traditional banks that give you 0.05% APY on savings accounts.

So now that we've established what new DeFi protocols need to work - money in the bank - they are faced with a "cold-start" problem - how do you get people to use your product/protocol at the beginning when no one else is?

Well, you can offer tokens. For example, I could start a new DeFi protocol called "DAVECOIN" and say "For every day you leave your (crypto) money in my treasury, I will give you one $DAVECOIN. And every day after that I will increase your reward by 1%, with an APY of 100000%, leaving you with a bajillion $DAVECOIN in like 6 months if you leave your money with us! And the price of $DAVECOIN could go up a lot! You never know!"

This is known as "Yield Farming". It solves the problem of getting a ton of money in a new protocol very quickly - some projects raised literally billions of dollars in weeks.

But what happens after a few weeks or months when the treasury is full, and the APY drops to 1%? The people providing the liquidity pack up their liquidity and move to the next protocol.

This is where the key innovation of Olympus DAO comes in to play - instead of borrowing (or renting) the liquidity, they buy it from you (over the course of several days so as not to make the market go up or down very quickly). In turn, you get the Olympus DAO token - $OHM - at a discount.

By owning the liquidity, Olympus doesn't have to worry about people packing up and leaving - they've already bought it from you. And it's working insanely well - they have over half a billion dollars in their treasury.

image

And because their treasury keeps growing larger and larger, they can afford to keep creating new OHM tokens and give them to people who hold OHM tokens. This is called Staking, and each 8 hours your staked OHM compounds! Your reward varies, but the current APY is ~8000%.

image

Each OHM token currently goes for ~$1000/token.

Klima DAO is a fork (copy and paste of code, with a few things changed) of Olympus DAO. Instead of trying to accumulate crypto assets in their treasury, they are trying to accumulate carbon credits in their treasury.

This has been incredibly successful so far, and they have bought 5% of the world's carbon credits in under a month.

They also offer current APYs of 34,380.48%.

image

πŸ’‘
If you're interested in investing in either of these protocols and want to hop on a call to walk through how to do it, lmk, I'm happy to! (dave@vibecap.co)

Recommended Reads/Listens

Chris Dixon and Naval Ravikant β€” The Wonders of Web3 And Much More | The Tim Ferriss Show

Chris Dixon is a partner of a16z and Naval is the founder of Angellist. Wide-ranging convo that covers basically the entire sphere of how to mentally model web3 and crypto.

web3/crypto Policy Hub - Andreessen Horowitz

A go-to guide for policy makers on how to think about web3/crypto