‍What Differentiates Lyrik?

• Our Team. We like to say that our team straddles the Web2 to Web3 divide. That means that about half the team has worked in Web2 for over a decade, and knows how internet software grows and scales (Google Play Store, Google Enterprise, Goldman Sachs). The other half of the team has been on the ground floor of crypto community building and ecosystem development since 2016 (Messari, NEAR, Anon, Consensys), and understands what value-imbued networks need, and how they differ from traditional Web applications. This combination gives us a unique perspective when evaluating the value proposition of new concepts and design architectures.  

• Our Network. Prior work at Google Enterprise, Google Play, Consensys, NEAR, Ethereum, and Messari, means that we are not only experienced in our industry, but also deeply connected. This works for sourcing deal flow, finding the right hires, and for providing further value to founders looking for specific partners or experts in certain areas of their product.  

• Our Approach. We realize that being successful in venture means taking large calculated bets on a select few portfolio companies. Our approach is to identify talented teams, building in clusters of the world of dApps that are ripe for innovation. We then back them as early as possible (pre-seed, seed), and work directly with them to build out a roadmap for successfully launching their token or business model. We embrace the risk of being early, by building close relationships with our founders and supporting them ‘as if we were on the team’.

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:

1. Consumer Infrastructure → For reaching non-crypto users especially, and hiding the complexity of on-chain identity and data management.
2. Gaming → For a new generation of ‘Open’ Games and their relevant infrastructure - where users co-create, own, and contribute to the development and success of the game. ‍
3. L1s and Bitcoin → For economically scaling the internet of value to a billion users. Working through existing scalability and usability bottlenecks on Layer 1 Blockchains (Ethereum, NEAR, Aptos, Sui). Pioneering novel execution environments fit for specific jurisdictions or applications (Appchains, Shards, and Rollups). Creating the infrastructure for a billion users to interact with a blockchain, on the daily.‍
4. DeFi and Open Web Financial Primitives → For creating the rails that will underwrite a global financial system, with accessible financial services, pooled liquidity, and creative mechanisms for storing and yielding value. ‍
5. Novel Assets and Token Standards → For bringing ‘real world’ processes, items, and social systems onto blockchains as non-fungible value.

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:

1. Calimero Network - Lyrik Co-Led with Khosla Ventures. Calimero is a private shard on NEAR focused on enterprise blockchain. ‍
2. Crystals of Naramunz - Lyrik Co-Led with CoinFund. Crystals of Naramunz is a free-to-play action role-playing game with a robust open economy of player-owned assets.

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:

• We’ve learned that founders need to be committed to building a product, first and foremost, and not solely making money.

• We’ve learned that fundamental token design is essential for any value-imbued network. This token design needs to be executed on both short, medium and long-term time horizons.

• We’ve learned that the blockchain you build your solution on will impact your ability to scale up that solution and find product market fit - whether that requires users, liquidity, low fees, or .

• We’ve learned that launching a token requires a lot more lifting than simply dropping it on a decentralized exchange and hoping for retail to pick it up.

• We survived the crash of Terra / Luna, the implosion of FTX, the destruction of Celsius and Blockfi, and the unpredictable regulatory environment with close to zero exposure from our portfolio companies.

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.

Testimonials:

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

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