Mr. Akshat Vaidya, co-founder of Maelstrom (a family office of the illustrious Arthur Hayes of BitMEX fame), hath delivered a scathing critique of early-stage crypto funds, notably Pantera Capital. His grievances, one might say, are as dramatic as a heroine’s sigh at a ball-though here, the villain is not a suitor but a fund’s bloated fees and poor performance.
In a recent missive on X, Mr. Vaidya lamented his £100,000 investment in Pantera’s Early-Stage Token Fund LP, which, after four years of “management” and “carry,” had dwindled to a mere £56,000. One might almost think they were attempting to outwit the very market they sought to exploit.
Crypto VC Funds: How LPs Get Rekt
My £100K, vaporized into £56K within 4 years (3% mgmt + 30% carry) by this Early-Stage Token Fund. A tale of woe, indeed! 🤷
During those 4 years, BTC 2x’d and numerous seed deals did 20-75x. Yet this fund charged fees to erase half of LP capital. [Vintage matters, sure,…]
– Akshat_Maelstrom (@akshat_hk) November 3, 2025
These funds, it seems, have grown so grand that their fees now rival the gowns at Lady Catherine de Bourgh’s ball. A 3% management fee and 30% performance fee-truly, a feast for the fund managers and a famine for the investors. While Bitcoin hath doubled, and seed projects achieved returns of 20x to 75x, these funds have managed to turn profit into puff. 🐉
Mr. Vaidya argues that when funds grow too large, they become as clumsy as a gentleman trying to dance a waltz with both hands full of ledgers. They scatter their investments too thinly, diluting gains like a poorly brewed pot of tea. One might wonder if the market itself is not the true casualty here.
He further opines that investors deserve better than to lock their capital in funds that chase winners like hounds after a hare. “Let us not,” he implores, “be content with crumbs when the market offers a feast.”
The Growing Debate Over Crypto Fund Efficiency
Mr. Vaidya’s musings coincide with a broader inquiry into whether early crypto funds, once the darlings of the blockchain world, have outgrown their usefulness. Firms such as Pantera, a16z Crypto, and Paradigm now boast funds of such size that one might mistake them for sovereign wealth funds. Yet deploying such vast sums in a market still in its infancy is akin to expecting a sapling to bear the weight of an elephant.
Critics decry this as a “spray and pray” model, where funds fling capital like confetti at startups, hoping for a lucky strike. Meanwhile, smaller firms, such as Maelstrom, pride themselves on being as precise as a well-timed quip. They focus on cash-flowing, acquisition-ready ventures, offering founders exits as smooth as a well-executed curtsy.
In October, Bloomberg whispered tales of Maelstrom raising £250 million for a new fund, targeting mid-sized crypto infrastructure firms. One might say they are the Jane Austen of the crypto world-disciplined, witty, and always in control. 📜
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2025-11-03 20:39