IOBC Capital Managing Partner: Western funds are squeezing the survival space of Asian funds

According to Golden Finance, Alva Xu, a managing partner at IOBC Capital, shared her impressions of Token2049 on the X platform. Alva Xu stated: Some large Western funds are accelerating their financing efforts. From the level of personnel investment and importance they attach to it, we can see their determination to compete fiercely with Asian LPs. However, these discussions aren't exciting; AUM is an enemy of venture capital funds. Western funds are squeezing the living space of Asian funds; LPs are becoming as valuable as high-quality developers, so IR will become increasingly important in the future. As the market shifts today, some GPs are resorting to various tactics such as buying OTC shares, rushing into secondary markets and incubating projects - all aimed at proving that they can outperform Bitcoin returns. But isn't the purpose of venture capital to support great companies early on? Therefore, it's better for them to return back to basics which would impress investors more.

Regarding current situation she proposed three suggestions for fund raising: Don’t emphasize financial returns or DPI because LPs can directly buy ETFs or hold BTC; Make yourself an explorer in this industry with strong curiosity and your own worldview which could impress LPs more since what company you invest in represents what kind of world you want build; DD every strategic plan from each LP because understanding how LP strategically invest is very important.