Marc Andreessen, Jeff Vinik Back Crypto Startup Neoclassic Capital

Muyao Shen, Bloomberg News

(Bloomberg) -- A pair of Goldman Sachs Group Inc. and BlockTower Capital alumni have launched a new digital-asset investment firm focusing on areas including derivatives, tokenization of real-world assets, entertainment, gaming and social.

Miami-based Neoclassic Capital, co-founded by Michael Bucella and Steve Lee, will invest in both private and public markets in crypto, they said in an interview. Since the firm’s January launch, it has received investments from venture capitalists Marc Andreessen, Chris Dixon, and Tampa Bay Lightning owner Jeff Vinik. The duo were most recently at BlockTower, a digital-asset investment firm. Bucella and Lee declined to disclose the asset under management, citing confidentiality.

“I think in the 2017 bull cycle, 99.9% were speculation, almost 0% was use cases,” said Lee, adding that it leaves room for real uses cases to come in the next bull market.

With the US regulatory crackdown in the digital-asset industry over the past few years, Neoclassic aims to connect western crypto companies with markets in Japan, South Korea and other Asian countries. The co-founders and managing partners said their multi-cultural background is an advantage. Lee was born in South Korea, and spent more than 20 years in South Korea, Japan and Singapore. Bucella is from New York.

“There’s a lot of the western world that can’t tap into these very localized regions, that’s where the expertise of Neoclassic is,” Bucella said. “In the US, it’s still murky. That’s why you can’t generate enormous user bases.”

Bucella and Lee have “consistently shown the ability to both identify and capitalize on opportunities across both Asia, specifically in Korea and Japan, as well as through their deep US crypto ecosystem,” Vinik said in an email statement.

The firm also received investments from global investors such as L1 Digital AG, a Zurich-based investment advisor, and Genki Oda, an executive at SBI Holdings.

Neoclassic’s “deep market knowledge, coupled with their extensive experience and network, makes them a powerhouse for identifying and investing in the most promising crypto founders,” Ray Hindi, chief executive officer and chief investment officer of L1 Digital AG, said in an email response.

Outside venture funds, the firm plans to launch hedge funds, growth equity, credit and others in the future, according to Bucella.