Unbounded Capital co-founder Zach Resnick is a man who wears many hats. He is known to be a successful investor, entrepreneur, and innovator in the Bitcoin space. But before taking on these roles, he was an avid online poker player during his teenage years.
Zach’s first encounter with Bitcoin during his online poker days opened his eyes to the opportunities he can do with Bitcoin. While playing, he noticed several poker sites that offered players the ability to withdraw and deposit Bitcoin. Zach was intrigued after seeing other players enjoying their Bitcoin winnings.
Zach remembered the digital currency again in 2016 while living in Tel Aviv. He met Yuval Roth of Bits of Gold, a company that converts bitcoins into shekels in Israel. The two discussed Bitcoin for hours, which prompted Zach to explore the technology further.
As founder of fly flat, a discount biz/first class flight concierge service, Zach decided to use his entrepreneurial background to start another business, this time involving Bitcoin. Zach, who is of Jewish descent, set out to partner with some members of the Jewish community in Buenos Aires to establish Argentine exchange accounts. Why Argentina? Due to the country’s high inflation rate, Zach has seen the price of bitcoin steadily increase by around 40-50% on Argentinian exchanges.
He also noticed the difficulty of getting pesos out of Argentina and saw an opportunity to profit by reaching out to Bitcoin buyers in the country. He sold cheaper Bitcoin, which he obtained from the United States or other exchanges, withdrew the pesos from Argentinian bank accounts and waited several days before receiving a wire transfer from banks abroad. It was a cheaper alternative for Argentinians to acquire Bitcoin, and with a much faster turnaround time – a win-win situation for Zach and his clients.
Zach’s bitcoin journey continued to unfold after moving to the San Francisco Bay Area, where he immersed himself in the bitcoin and blockchain community. As he tells Kurt Wuckert Jr. in this episode of CoinGeek Weekly Livestream, his success in trading and managing people’s money has led him down a rather different path: investing.
“I realized that, you know, there’s a lot of room to innovate as an investor,” he says.
Launch unlimited capital
After continued success in investing, Zach launched Unbounded Capital in 2018 with like-minded entrepreneurs. Unbounded Capital describes itself as “a blockchain investment firm built by technical founders who understand the entrepreneurial journey; former poker pros who know how to analyze the risks; and investors who understand that early-stage investing is not a passive activity. »
When the business started, Zach admits funds were scarce. “We didn’t have a lot of capital, but we had a lot of ideas, a lot of energy,” he says. He and his partners, Jack Laskey and David Mullen-Muhr, invested a lot of time putting their ideas into writing, which in turn were used in Zach’s sales pitches.
As Zach explains, his pitch focused on Bitcoin’s superior powers and scalability. But for its part, discussing factors such as the digital currency market has proven to be very effective. In his new and improved pitch, he is keen to point out that the vast majority of them being exposed to a speculative “crypto” market is not always ideal. As he explains, “Exposure to these things that go up and down either directly in tokens or you have exposure with these poorly exploited bets in the crypto market like exchanges, prime brokers and miners.” Unlike speculative investments, he says, Unbounded Capital exclusively backs founders trying to solve big problems.
Unbounded Capital is currently raising its second fund with a more traditional venture capital fund structure. “We’re going to raise about $70 million over the next year and then deploy it over about three years to some of the top startups that build on Bitcoin SV,” Zach reveals.
What are the main criteria to qualify for a VC, for those who ask? Zach notes, “We want to support people who build for the long haul and solve big problems.”
Zach also offers advice for startups considering taking on venture capital.
“You should really be diligent about what that portfolio looks like and what it says about their vision…I think you want to make sure they’re not endorsing competitors,” he says.
Regarding Zach’s perspective on venture capital, he says, “Venture capital fills a very big need in the world, which is basically getting more capital from investors and institutions that are incredibly rich who have more money than they know what to do with. And put that more into mature companies, but sort of into the next innovative wave of world-changing companies.
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