Polychain Capital, based in San Francisco, is a leading venture capital firm specializing in managing a cryptocurrency hedge fund focused on blockchain assets. Founded by Olaf Carlson-Wee, the first employee at Coinbase, Polychain quickly became a significant player in the crypto space, achieving remarkable success. In 2017, investors saw returns of 2,303%, a record-breaking achievement for a billion-dollar fund. With backing from major firms such as Sequoia Capital, Andreessen Horowitz, and Founders Fund, Polychain’s assets surged to $5 billion by 2022.
Despite its success, Polychain has faced challenges, including a lawsuit in 2018 from an early investor, Harry Greenhouse. Greenhouse alleged he was underpaid when he requested a withdrawal, receiving his original investment instead of its appreciated value. Carlson-Wee’s management of the fund, including a controversial strategy in 2017 that required investors to significantly increase their stakes or exit, has also drawn attention. By 2022, Carlson-Wee’s net worth had grown to $600 million, highlighting the firm’s continued influence in the crypto market.
