Venture capital has lost its way.
What began as a craft rooted in seasoned judgment and long-term value creation has turned into a nominal numbers game—one often rigged by cheap money, inflated valuations, and perverse incentives. Too many funds now chase short-term paper gains in a depreciating currency, resulting in a bloated $1.5 trillion industry that too often burns more than it builds.
Early Riders is a response to that dysfunction.
We’re the first venture capital firm denominated entirely in bitcoin. That’s not a branding exercise—it’s a foundational principle. Bitcoin isn’t just an asset we believe in; it’s the benchmark we hold ourselves to. Investing in early stage companies which solve a problem which the market has not yet identified can return more than simply holding bitcoin. If the opportunity can’t outperform, we shouldn’t invest in it. It’s that simple.
Why This Matters
All VCs operate on fiat terms, chasing returns that often look good on paper but disappear when adjusted for inflation or benchmarked against more resilient stores of value. Meanwhile, limited partners (LPs) bear the cost—locked into funds that may post nominal gains while underperforming in real terms.
At Early Riders, every investment is weighed against bitcoin as our hurdle rate. Our fund’s carried interest only kicks in if we return in excess of 25% more bitcoin to our investors. No other firm is built this way.
The Legacy of Capital Destruction
The rot in VC didn’t emerge overnight—it metastasized over years of silent decay. Once upon a time, capital allocation meant something. The Medici in Florence, the Rothschilds across Europe, and early American industrialists all understood that wealth creation required discipline and accountability. They measured returns not in fleeting headlines or venture rounds, but in real purchasing power—often pegged to gold.
With the death of the gold standard in the 20th century, capital lost its anchor. The venture industry followed suit. Returns were celebrated regardless of value created. Founders were taught to spend, not save. And funds optimized for scale, not sustainability.
We think it’s time for a reset.
Building from First Principles
Early Riders is run by builders, not just allocators. We’ve been founders, operators, and contributors to both bitcoin-native and traditional startups. That matters. It means we know how to solve hard problems, stretch resources, and grow real businesses. We don’t just read pitch decks—we’ve written them. We’ve raised rounds. We’ve built products that people actually use.
This perspective is why our portfolio companies look different. They don’t chase vanity metrics. They build value, serve real customers, and run tight operations. We back them early—usually prior to company formation, pre-seed, or seed rounds—when discipline matters most.
Bitcoin as the Benchmark
We don’t view bitcoin as a tech theme. It’s the world’s soundest money. And just as sound money defined capital formation in centuries past, it will define the next era too.
Bitcoin is our treasury asset. It’s how we raise capital. It’s how we return capital. And it’s the measuring stick that keeps us honest.
We're especially focused on companies that generate meaningful revenue from bitcoin-related services—custody, payments, trading, lending, and infrastructure. But we also back companies outside bitcoin, if they adopt our benchmark: outpacing bitcoin by at least 25% over time.
Early Riders’ Framework For Outperforming Bitcoin
We are value investors focused on opportunities which are underappreciated or completely unknown by the market, yet deliver substantial value to the world. We invest in tremendous founders who have identified a market opportunity with very strong growth opportunity. We primarily focus on companies deriving revenue from the bitcoin industry because of the substantial growth of their customer base - we believe one metric which will grow faster than bitcoin’s USD exchange rate over the next decade is the percentage of new users interacting with the bitcoin network and associated products and services.
However, we are not exclusively focused on companies operating within the bitcoin industry, as bitcoin adoption grows, we will invest in great founders and ventures with differentiated business models who understand the value of bitcoin as a treasury asset and the cost of capital.
Why Now
Technology is evolving rapidly and its deflationary impacts will only accelerate. This means startup costs will continue to fall and capital efficiency will be paramount. Existing incumbents are naturally slower to adopt new technologies and subsequently reap the rewards of lower costs, allowing challengers to outcompete on the basis of cost.
The monetary system is shifting as well. More founders, investors, and operators are realizing that bitcoin offers a competitive edge—especially when integrated into a company's treasury. In a competitive environment, capital allocation is paramount, and any company who does not maintain a bitcoin treasury will be outcompeted by those who do, as those who maintain a bitcoin treasury will be offered greater strategic flexibility over time.
As this view spreads, Early Riders may be the first bitcoin-denominated fund, but we certainly won’t be the last.
The Bottom Line
Venture capital doesn’t need to be reinvented. It needs to be remembered for what it was: a craft rooted in value creation, sound money, and aligned incentives.
Early Riders is here to restore that discipline—with bitcoin as our compass.
We have seen a number of great businesses - especially across areas like global onramps, lending and credit products, insurance, bitcoin specific RIA tools, and in the intersection between capital markets and real estate. We would encourage any other founders to reach out - we would love to hear what you are working on!
