Goldman Sachs Alumni’s Crypto Startup Garnering Support from A16z Co-founder

A new player emerges in the crypto arena as Neoclassic Capital, a startup founded by ex-Goldman Sachs employees from BlockTower, secures funding from industry heavyweights.

Founded by Michael Bucella and Steve Lee, Neoclassic Capital aims to invest in tokenization of real-world assets, entertainment, crypto gaming, and social projects. With backing from Marc Andreessen, Chris Dixon, and Jeff Vinik, the firm intends to steer clear of speculative ventures, focusing on tangible products and ventures with real-world applications. As Lee noted in an interview with Bloomberg, amidst the 2017 bull cycle frenzy, “99.9% were speculation,” highlighting the necessity for a more grounded investment approach.

West to East Crypto Expansion

Neoclassic Capital sets its sights on bridging Western crypto enterprises with Asian markets, particularly in Japan and South Korea. Bucella emphasized the firm’s expertise in navigating these regions, where localized knowledge is paramount. According to Bucella, “There’s a lot of the Western world that can’t tap into these very localized regions, that’s where the expertise of Neoclassic is. In the U.S., it’s still murky. That’s why you can’t generate enormous user bases.”

While the exact funding amount remains undisclosed, reports indicate investments from global players like L1 Digital AG and Genki Oda of SBI Holdings. Besides direct investments, Neoclassic Capital plans to utilize the funds to launch various financial instruments including hedge funds, growth equity, and credit, ensuring a diversified portfolio.

In tandem with Neoclassic Capital’s emergence, Asia-based family offices are increasingly drawn to the crypto market. Zann Kwan, Managing Partner and Chief Investment Officer at Revo Digital Family Office, highlights the burgeoning interest, driven by the global fascination with assets like Bitcoin and Ethereum. Kwan emphasizes the opportunity crypto presents for portfolio diversification and enhanced returns, both through direct and indirect investments in digital assets.