Investing in new technologies is one of the riskiest and potentially profitable activities in the world. And it is that, although investing in technologies during their early stages of development can, and usually ends up being a waste of money. When you invest in the right company, the returns can be exponential. This is the case of Fred Wilson, who transformed $ 2.5 million into $ 4.6 billion thanks to Coinbase.
Fred Wilson’s investment style
Investing in promising technologies is nothing new for Fred Wilson, co-founder of Union Square Ventures. A venture capital firm that has gained notoriety in global financial circles thanks to a series of successful investments since its inception in 2003. Which have generated several million dollars in profits for the firm, thanks to early investments in companies such as Twitter, Zynga and Tumblr.
This has been achieved thanks to the strategic vision of Fred Wilson. Who, when investing, allows his curiosity to tell him which businesses have future potential. Looking for companies that use the Internet as a means to connect people and ideas around the world. Precisely the impulse that led him to invest early in social networks, and that has motivated him to bet on cryptocurrencies recently.
This being the reason why already in 2013, when cryptocurrencies were still just a little-known curiosity by the general public, Fred Wilson and Union Square Ventures invested 2.5 million dollars in the Coinbase exchange. An investment that coincides with what Wilson wrote in those days about cryptocurrencies:
«An alternative currency with roots in peer to peer networks and based on an algorithm that is transparent to all is an idea whose time has come“Said Fred Wilson, co-founder of Union square ventures.
However, during these early days the success of Wilson’s bet was not guaranteed. On the contrary, shortly after investing in Coinbase, Wilson commented in a conference on Marketing that we can be completely wrong, it can be a fantasy (…) This is taken from a science fiction novel, but science fiction novels are the best that you can read if you want to invest (…) It is a visceral bet.
And, finally, this visceral gamble has brought him great benefits. Well, Fred Wilson turned $ 2.5 million into $ 4.6 billion thanks to Coinbase after the exchange went public. This triggered the valuation of the company, which currently stands at around $ 100 billion, with a portion of it belonging to Wilson’s firm.
Thus, as soon as it began trading on Wall Street, Union Square Ventures sold 4.7 million of its shares in Coinbase for a value of 1.8 billion dollars. Thus guaranteeing the huge profits made by investing in the exchange. Despite which Wilson is not fully a member of the crypto community, accepting even today that the crypto market could collapse at any moment.