Investing in Donut – EarlyBlock VC – Medium

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Our thesis

Donut provides convenience, trust and accessibility to the digital asset market. Cryptoassets will only be the vanguard for a new open financial system running on public blockchains (think: value exchange on an open protocol — similar to information exchange on the email protocol — instead of value exchange across walled gardens like traditional banks). Blockchains and crypto enable completely new kinds of assets: programmable money and digital assets with unique capabilities that move on an open, trustless and efficient infrastructure (public blockchains). Early versions of these assets include NFTs in gaming and collectibles, programmable securities (new forms of financial contracts) and self-enforcing securitized debt and derivatives. For a full list of decentralized finance applications, see here and here.

The legacy infrastructure used by banks, brokers, asset managers and others in the financial industry will not be suited for these new kinds of assets and financial products. As the usability and security of the parallel open financial infrastructure grows, more and more traditional assets will become tokenized and move onto the new infrastructure. Eventually everybody will be financially included — independent of domicile, wealth and regulations that currently prevent most of the world’s population from participating in our financial system.

As we have seen in many cases in the tech start-up world before, Donut has the potential to move from being a specialized player in a niche (cryptoassets) into a leading asset manager of the new world. Donut helps onboard more users into this powerful technology ecosystem today and paves the way for retail investors into an open financial system tomorrow. It facilitates a future where all assets are tokenized and accessible to everyone in an equitable way without rent-extracting middlemen. We are incredibly proud to be part of their journey.

P.S.: Donut is hiring Frontend Engineers with React experience. They are also looking for “Entrepreneurs in Residence” for the summer.

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