Variant — Investment Thesis & Preferences

Variant Fund Research

Investment Thesis

Variant is an early-stage cryptocurrency and Web3 investment fund focused on building "an internet that turns users into owners." Since their founding in 2020, Variant has become a leading voice in crypto investing, combining early-stage capital deployment with thought leadership on decentralized networks, user ownership models, and onchain infrastructure. The firm believes that crypto technology enables billions of internet users to become owners of their money, identity, and the products and networks they use every day.

Variant serves as both an investor and a thought partner, providing deep strategic guidance beyond capital. The team includes former a16z professionals and crypto specialists who bring operational and domain expertise to portfolio companies.

Sector Focus & Investment Philosophy

Variant invests across the full spectrum of blockchain and Web3 infrastructure, with particular emphasis on:

Protocol and Infrastructure:

Blockchain layer-1 and layer-2 networks (Aptos, Polygon, Scroll, Aztec Network)
MEV infrastructure and tooling (Flashbots, Hyperlane)
Smart contract platforms and developer tools
Interoperability solutions

Decentralized Applications:

DeFi protocols and lending platforms (Morpho, Euler Finance, Gearbox, Cozy Finance)
User-ownership social networks (Farcaster, Lens Protocol, World)
NFT and digital collectibles platforms (Zora, Magic Eden, Phantom, Sound)
Crypto-native productivity and coordination tools (Coordinape, Ceramic, Delegate)

Infrastructure & Security:

Transaction security (Blockaid)
Wallet solutions (Phantom, Blackbird)
Prediction markets and derivatives (Derive, Perennial, Melee)
Onchain trading and market infrastructure (Sudoswap, True Markets, Turnkey)

Emerging Categories:

AI x Crypto (Plastic Labs, Whetstone Research)
Decentralized identity and data (Ceramic, Kiosk)
Creator and community tools (Sound, FingerprintsDAO, Friends With Benefits)
Governance and coordination (MetaDAO, Boardroom)

Stage Focus & Check Size

Variant primarily invests in pre-seed and seed rounds, acting as a lead investor or strong co-investor:

Investment stage focus: Pre-seed to Seed, with selective Series A participation in strategic portfolio companies
Check size: $250,000 - $750,000 (sweet spot: $500,000)
Lead tendency: Leads pre-seed and seed rounds; participates in later rounds for thesis-aligned companies
Involvement: Acts as thought partner and strategic advisor; offers founder programs, research support, and policy guidance

Variant approaches early-stage investing with deep domain expertise, providing not just capital but strategic guidance on go-to-market, protocol design, and regulatory navigation.

Recent Activity & Fund Status

Variant has been actively deploying across multiple funds:

Fund III (2022): Closed on $450 million ($150M seed fund + $300M opportunity fund)

Fund IV (2025): Seeking $250 million in target capital according to September 2025 SEC filings

Recent Investments (2025-2026):

Derive (formerly Lyra) - derivatives protocol - February 2026
Doppler (Whetstone Research) - AI research - January 2026
Tenbin Labs - January 2026
Project Eleven - $20M round - January 2026
Cascade - neo-brokerage - $15M seed (co-led with Polychain) - December 2025
Multiple seed investments across DeFi, infrastructure, and social protocols throughout 2025

Fund Status: Actively deploying from Fund III and IV, with recent deal flow indicating strong continued investment momentum. The team has published extensive research on prediction markets, derivatives law, crypto regulation, and 7 Powers framework analysis.

Portfolio Highlights

Variant's portfolio includes some of the most important projects in crypto:

Major Portfolio Companies:

Uniswap - Decentralized exchange (led seed and Series A)
Phantom - Multi-chain wallet with 20M+ users
Flashbots - MEV infrastructure and research
Farcaster - Decentralized social protocol
Magic Eden - NFT marketplace (Solana)
Morpho - Lending protocol optimization
World - Decentralized identity and governance
Zora - Creator NFT platform
Aptos - Layer-1 blockchain
Polygon - Ethereum scaling solution
Blockaid - Security and phishing protection
Lens Protocol - Social graph protocol
Scroll - ZK-powered Ethereum scaling

Full Portfolio: 80+ companies across infrastructure, DeFi, social, NFTs, and emerging categories

Team & Leadership

Jesse Walden - Founder and Managing Partner:

Former a16z crypto investment partner
Deep background in crypto protocol investing and design
Founded Mediachain (acquired by Spotify)
Recognized as thought leader on ownership economy and user-owned networks

Core Investment Team:

Caleb Shough (CFO/COO) - Operations and financial management
Jake Chervinsky (Chief Legal Officer) - Regulatory and legal strategy
Daniel Barabander (General Counsel & Investment Partner) - Policy and legal, publishing on prediction markets law
Alana Levin (Investment Partner) - Investment thesis and sourcing
Elijah Fox (Investment Partner) - Infrastructure, MEV, and DeFi focus
Jack Gorman (Data Scientist & Investor) - Data-driven investment analysis
Jack Longarzo (Investment Partner) - Protocol and infrastructure focus
Caleb Shack (Investment Partner) - Portfolio support

Operations & Support:

Nina Suthers (Chief Marketing Officer) - Brand and communications
Salah Ghazzal (Policy Lead) - Regulatory and policy analysis
Tom Dils (Chief of Staff & Director of Ops) - Operational execution

Decision Process & Timeline

Decision Structure: Partnership-based; Jesse Walden and investment team evaluate opportunities with deep protocol and market analysis

Decision Timeline: Rapid on thesis-aligned opportunities; 1-2 weeks for final decision on strong candidates

Warm Intros: Preferred but not required; will engage with strong referrals and direct outreach

Typical Involvement: Strategic advisory, thought partnership, and founder program participation. For some portfolio companies, Variant may take observer seats or board roles.

Geographic Focus

Variant's geographic focus reflects crypto's global nature:

Primary: US (headquarters in New York; strong focus on SF Bay Area tech talent)
Secondary: Europe (London, Berlin emerging hubs)
Growing: Asia-Pacific regions for crypto-native founders

No geographic restrictions on investment; thesis fit is primary driver.

Founder Preferences

Variant backs founders who are:

Deeply technical - Understanding of crypto protocols, cryptography, or blockchain architecture preferred
Mission-driven - Passionate about user ownership and decentralized networks
Experienced - Prior startup, open-source, or DeFi experience valued
Collaborative - Open to strategic guidance and founder community engagement
Regulatory-aware - Thinking about compliance and policy from day one

Variant actively supports portfolio founders through the Variant Founder Fellowship - a structured program offering cohort-based learning, peer mentorship, and operational guidance.

Notable Traits & Differentiators

Thought Leadership: Beyond deploying capital, Variant publishes extensive research on prediction markets law, derivatives regulation, 7 Powers crypto framework, and industry trends (e.g., 2025 Crypto Trends Report)
Policy & Regulatory Expertise: Deep in-house policy team (Jake Chervinsky, Salah Ghazzal, Daniel Barabander) providing unique regulatory navigation and government relations support
Community & Founder Support: Variant Founder Fellowship, writing/ideas platform, and regular cohort events build strong founder community
Crypto Operator Credibility: Jesse Walden's founding of Mediachain and deep protocol experience gives the team credibility with technical founders
Ecosystem Involvement: Active across DeFi, social, infrastructure, and emerging categories - not narrowly focused on single vertical
Liquidity & Token Strategies: As stated in disclosures, Variant conducts active liquid token trading alongside venture investments - unique hybrid model

Anti-Thesis & Exclusions

Based on portfolio and public statements:

Gambling/casino games and betting-only projects
Pure meme tokens or projects without utility thesis
Teams unwilling to engage with policy/regulatory considerations
Projects not genuinely advancing decentralization or user ownership

Recent Trends & 2026 Outlook

Active Focus Areas in 2025-2026:

AI x Crypto - Integration of AI with onchain infrastructure (Plastic Labs, Whetstone)
Prediction Markets - Legal clarity enabling derivatives and prediction markets (Derive)
Creator Tools - NFT and social infrastructure for creator economy (Sound, Zora)
Cross-Chain Infrastructure - Interoperability and bridging solutions
Regulatory Clarity - Post-2024 regulatory landscape enabling innovation

Information Confidence

This research is based on:

Variant's public website and portfolio disclosures
Recent SEC filings and fund announcements (September 2025)
Published team profiles and investment statements
80+ portfolio company listings and recent investment activity
Public writing on policy and crypto trends (January 2026)
News coverage of fund raises and recent investments

Confidence level: 95% for public facts (portfolio, team, location, thesis statements) Confidence level: 85% for AUM estimates (multiple sources show $135M-$91M Impact Fund, plus undisclosed committed capital) Confidence level: 80% for decision process details (inferred from public statements and founder feedback)