Tim Draper says he passed on Coinbase after underestimating how quickly retail crypto adoption would arrive, but his son invested early and helped turn a rejected opportunity into one of the venture capitalist’s biggest wins.
Key Takeaways
Tim Draper passed on Coinbase after questioning how quickly retail crypto adoption would accelerate.Adam Draper backed Brian Armstrong before Coinbase became a publicly traded crypto giant.Coinbase’s success generated returns large enough to nearly double Draper Associates Fund V.“I decided Coinbase would have too long a road to success, so I passed. Ouch.”
Adam Draper Saw the Opportunity Before His Father DidTim Draper noted:
Coinbase Became the Outcome Draper Initially UnderestimatedAccording to Tim Draper, Coinbase became one of the defining investments of Draper Associates Fund V, a venture fund managed by his firm. The VC remarked:
Draper’s mistake was not identifying the founder; it was judging the market’s arrival date incorrectly.
Brian Armstrong Credits Draper’s Willingness to Make Early BetsArmstrong responded to Tim Draper’s reflection by praising him and his son for their willingness to support companies before their markets were fully developed.
“Thank you! I admire the sci-fi level bets you and Adam are willing to make – you are both fearless and independent thinkers. And this is why you keep putting up great returns in your funds!”
Draper ended his reflection with a message aimed at founders who face rejection from investors during a company’s earliest stage. He concluded: “The lesson for founders: If the first VC says no… try asking one of their sons or daughters… some call mine the new VC scions.”
