Reciprocal Ventures

Reciprocal Ventures Research Investment Thesis Reciprocal Ventures is a blockchain and cryptocurrency-focused venture capital firm that invests in founders building decentralized technologies to reshape the internet and capital markets. Founded in 2016 by Michael Steinberg and led by Managing Partner Michael and General Partner Craig Burel, the firm believes that blockchain networks represent a paradigm shift in how information and value are transferred. Their thesis centers on the conviction that open-source blockchains will fundamentally restructure trust, starting with the internet and capital markets infrastructure. The firm explicitly focuses on investments at the intersection of internet protocols, capital markets, and crypto infrastructure. They are committed to being "day 0 partners" to founders, offering not just capital but hands-on operational support in go-to-market strategy, product development, operations, and community building. Fund History and Status Reciprocal Ventures has three active funds: Fund I (2017) : $25M+ (17 investments) Fund II (2022) : $70M (29 investments as of April 2025) Fund III (2025) : Targeting up to $100M (recently launched, in early deployment) Current AUM is approximately $201.1M as of March 2025. The firm is actively deploying capital with 3 new investments in the last 12 months as of October 2025, indicating continued momentum in the market. Investment Strategy Stage Focus : Early-stage (Pre-seed through Series A) Pre-seed: Backing founders at v0.01 stage Seed: Primary investment stage Series A: Selected follow-ons and strategic participations Check Size : $500K - $4M typical range Seed rounds: $1M-$3M common Pre-seed: $250K-$750K Series A: $3M-$10M for strategic follow-ons Lead Tendency : Mixed - They lead seed rounds frequently and co-lead or participate in Series A rounds. The firm has led investments since 2017 in major protocols like Solana (2018 seed), The Graph (seed stage), and Blockdaemon (2020). Sector and Technology Focus Primary Sectors : Layer 1 Blockchains : Solana, Plume Network, Gateway Infrastructure : Blockdaemon, Helius, The Graph, Skip Protocol, Seda Protocol, Predicate DeFi Protocols : Kamino Finance, Kintsu, NFTfi, DoubleZero, Rio Restaking Payments & Settlements : Coinflow, Extend, HiGlobe, Plink.ai Enterprise/Developer Tools : Ceramic (merged to Recall Network), Grips Intelligence, Taina Consumer : Hedgehog Markets, LMAO (memecoin platform), Third Time Games, Moonwalk Fitness AI-Powered Applications : MindBridge, Placer.ai, Grips Technology Tags : Blockchain infrastructure, DeFi protocols, Web3 developer tools, payment rails, cryptoeconomic primitives, decentralized data solutions. Portfolio Highlights Notable Active Investments (57 companies total): Solana (backed 2018, now blockchain with millions of daily users and billions in capital) The Graph (seed stage investment, now a leading Web3 data protocol) Blockdaemon (2020, institutional-grade blockchain infrastructure) Kamino Finance (Solana DeFi Super App) EigenLayer (restaking protocol on Ethereum) Helius (leading developer platform for Solana) Skip Protocol (cross-chain connectivity) Plume Network (Layer 2 for real-world assets) Gateway (Layer 1 unifying public and encrypted state) Ceramic/Recall Network (decentralized data) Notable Exits : Radar (acquired by Core Scientific, 2021) - DeFi DEX Rio Restaking (acquired by EigenLayer, 2024) Skip Protocol (acquired by The Interchain Foundation, 2024) WorkRails (acquired by BigTime Software, 2024) Recent Activity (2024-2025): Plume Network: $20M Series A (Dec 2024) Multiple seed investments in AI/ML and infrastructure projects Continued active deployment from Fund II with focus on Solana ecosystem and Layer 1 innovation Team & Partners Leadership : Michael Steinberg, Managing Partner & Founder : Founder and lead of Reciprocal Ventures since 2016. 15+ years as top technology portfolio manager at SAC Capital (now Point72), managing public technology investments in hardware, enterprise software, and communications sectors. In 2012, led SAC's first private fintech investment. Started career at Sanford C. Bernstein. Bachelor's from University of Wisconsin-Madison. Deep expertise in markets, deal sourcing, and strategic capital allocation. Craig Burel, General Partner : Joined Reciprocal in 2017 and has been instrumental in shifting the firm to exclusive crypto focus. Led the firm's investments in successful projects including Solana, The Graph, Blockdaemon, and Kamino. Previously Head of Revenue Operations & Strategy at FiscalNote (seed stage AI company that IPO'd in 2022), responsible for go-to-market and revenue growth. Before that, Jr. Sector Specialist in Morgan Stanley's Institutional Equity Division focused on Media & Telecom. B.A. in Economics from Lafayette College. Brings 7+ years of crypto sector expertise and go-to-market experience. Supporting Team (7 total partners/staff): James Evans, Senior Associate Ann Rodriguez, Chief Operating Officer Steve Feldman, Director of Business Development Ali Sheikh, Venture Partner Elle Leemay Chen, Venture Partner Decision Process and Timeline Decision Structure : Partnership-based with hands-on involvement. Michael and Craig lead investment decisions with input from investment committee on significant rounds. The firm operates with 6-7 people total, enabling fast decision-making. Timeline : Early-stage focused firm with quick evaluation cycles. Seed decisions typically made within 2-4 weeks for strong founders in network. Warm Introductions : Strongly preferred. The firm emphasizes founder-first approach and values introductions from portfolio companies, portfolio managers, or trusted advisors. Emphasis on founder quality and vision over network effects. Founder Preferences and Anti-Thesis Ideal Founders : Technical founders with deep domain expertise in crypto/blockchain Experienced operators with previous exits or scaled companies Visionary founders building "ambitious" projects Founders solving real infrastructure or adoption problems Teams with shipped products or credible demos Anti-Thesis : Non-technical founding teams Projects without clear differentiation from existing solutions Speculative tokens without utility Pure gambling/casino mechanics Centralized solutions that don't leverage blockchain advantages Geographic Focus Primary Regions : United States (New York headquarters, significant West Coast presence) Strong presence in SF Bay Area, NYC Selective investments in London, Berlin, and other major tech hubs Solana ecosystem focus has led to investments across geographic boundaries International : While US-focused, the global nature of crypto means the firm invests internationally when founders fit thesis. Market Position and Recent Trends Reciprocal Ventures is a recognized early-stage crypto investor with particular strength in: Solana ecosystem investments (early backer with portfolio depth) Infrastructure plays (oracles, data solutions, developer platforms) DeFi primitives and protocols Payment and settlement solutions The firm has demonstrated staying power through crypto cycles, maintaining focus on fundamental technology while other investors have exited the space. Fund III launch signals continued conviction in the sector. Go-to-Market and Portfolio Support The firm emphasizes "more than capital: real reciprocal relationships." Portfolio support includes: Board representation and strategic guidance Go-to-market strategy and partnerships Product and operations mentorship Community building and ecosystem connections Introductions to strategic partners, customers, and follow-on investors Deep expertise in regulatory and compliance landscape Competitive Advantages Longevity in crypto : Operating since 2016 with consistent thesis through multiple market cycles Portfolio depth : 57 portfolio companies spanning infrastructure, DeFi, payments, and consumer Notable exits : Successful track record with acquired companies (Rio, Skip, WorkRails) Ecosystem position : Recognized validator of projects with influence in Solana ecosystem Experienced team : Michael's 15 years in markets + Craig's 7+ years in crypto + strong operating partners Capital efficiency : Multiple successful deployments across multiple funds Investment Checklist for Founders Reciprocal is likely interested if your startup : Is building infrastructure, protocols, or tools in the crypto/blockchain space Has a technical founder with domain expertise Solves a real problem in DeFi, payments, developer experience, or Layer 1/Layer 2 solutions Has shipped a product or working demo Is raising $500K-$3M for seed round Values hands-on partnership and operational support Is based in or willing to work with New York-based investor Reciprocal is likely NOT interested if : You're building in non-crypto/blockchain verticals (they're specialized) Team lacks technical depth or crypto domain expertise Project is primarily a token speculation play without utility You need $10M+ for seed round (outside check size) You prefer passive investors Notable Portfolio Companies (Partial List) Infrastructure (20+ companies) : Blockdaemon, Ceramic/Recall, Helius, The Graph, Skip, Seda, Predicate, EigenLayer, Grips Intelligence, NFTfi, Tealbook, Taina, Ironforge, Tallarium, Recall Network DeFi & Protocols (15+ companies) : Kamino Finance, Kintsu, LMAO, Lore.xyz, Hedgehog, Warlock, Plume, Gateway, Solana, Solflare, Squads Protocol Payments & Fintech (10+ companies) : Coinflow, Extend, HiGlobe, Plink.ai, Nym Card, January, TrueX, Placer.ai Consumer & Other (12+ companies) : Third Time Games, Moonwalk, MindBridge, Protego Trust Conclusion Reciprocal Ventures is a specialized, experienced blockchain and cryptocurrency venture capital firm with a 9-year track record, demonstrated success across multiple market cycles, and strong portfolio outcomes. With $201M AUM and active deployment from Fund III, they represent a credible, hands-on partner for early-stage crypto founders building infrastructure, protocols, and applications. The firm's strength lies in deep crypto domain expertise, early-stage conviction, and portfolio company support rather than pure capital scale.