What Differentiates Lyrik?
Is Lyrik Focused on a Specific blockchain or Thesis?
Our thesis on Web3, or the Internet of Value, is that the digital world is preparing to migrate existing internet infrastructure onto blockchains, to the effect that the average user will one day ‘live on-chain’. This belief that we will eventually ‘live on-chain’ - from paying an invoice, to watching a video, to sending a message to a friend - colors our perspective on what infrastructure, applications, novel assets, and services will accrue value in the coming decade.
Specifically, we see the following areas, as the ‘earliest’ primitives of a robust and lively decade of Web3 development:
The thesis of Lyrik is built around the early-stage of crypto as a whole, and the space for killer-apps within each sector. It is our contention that in the coming five years we will witness the first dApps in each sector that are capable of accruing (1) hundreds of thousands of users, (2) millions of dollars in volume, (3) long-term institutional partners, and (4) entirely new forms of digital assets and value monetization strategies with product market fit.
What are Lyrik’s most notable deals to date?
Despite being a young and relatively concentrated fund, Lyrik has co-led two large rounds, with many household names:
How does Lyrik optimally work with founders?
With all of our portfolio companies, we make a point to get into the weeds on the state of the product, token launch plan, business development strategy, and fundamental pain-points during our weekly or bi-weekly correspondence. While many founders need introductions to other investors, we also like to focus on the product roadmap, the monetization design strategy, and the token go to market plan (listings and public sale). These things specifically, are usually not familiar to first time founders in Web3. Meanwhile, in the event of a company crisis (these are startups!) or drastic market turn we work closely with our founders to re-structure for the new environment or circumstances.
What stage does Lyrik prefer to invest in?
As early as it gets! We believe the best opportunity is at the inception of strong-teams' entrance into launching their company. Optimally this is in the pre-seed stage. However, in light of the increase in deal flow in the market, Lyrik invests from pre-seed through seed to ensure a wide range. Deep relationships with Dev. DAO, NEAR Horizon, and the Xoogler community enhance such dealflow.
What Have You Learned From Deploying In Web3 Through The 2021 Cycle?
Starting the fund in the middle of the 2021 cycle allowed us to learn a lot about investing in Web3:
What is the average check size for Lyrik?
1 -2mm. Lyrik prefers to lead or co-lead, and as such is usually in a position to write large directed checks.
Does Lyrik invest in both Equity and Tokens?
Yes - our fund is structured to focus on venture in both equity and token terms (SAFE, SAFT, TPA, Convertible Loans, etc.) However we are not legally allowed to invest in liquid tokens.
What support do founders rely on the Lyrik team for, the most?
Our team’s experience at the intersection of token-design, technical product design, gaming, and emerging market clusters means we are usually the ones’ approached by founders in need of crypto-economics, ecosystem planning, community building, product, and token launch support. Crypto is a new animal for most founders, and our team brings tangible ‘in the trenches experience’ that greatly adds value to their development trajectory. This has been seen most clearly in our co-leads with Calimero Network and Crystals of Naramunz.
"Lyrik Ventures was one of the first VCs to believe in Naramunz. This a testament that Lyrik sees beyond bullrun hype and looking for diamonds that flourish even in a bear market. The team behind Lyrik packs a ton of valuable experience in both running companies and being a founder.
Speaking from my own experience it's been valuable to have Rune and Shannon to bounce ideas of and to find the right way forward. This hands-on approach makes the partnership with Lyrik feel like a part of the company in a natural way. " - Åke André, CEO & Founder of Crystals of Naramunz