The Pomp Podcast
David Fauchier, Founder of Cambrial Capital: The Institutional LP Landscape in Crypto
- David Fauchier founded Cambrial Capital as a crypto fund-of-funds to select and allocate across multiple crypto strategies rather than specializing in a single approach.
- The crypto asset class is uniquely positioned as both early-stage tech (volatile) and liquid simultaneously, requiring hybrid fund structures that differ from traditional VC or hedge fund models.
- Generalized mining encompasses direct participation in crypto networks beyond staking—including provisioning services, liquidating CDPs on Maker, and capturing value where no equity-like instrument exists.
- DeFi and generalized mining strategies are currently investable only at small scale (approximately $50K–$500K per strategy) and require extremely sophisticated managers to execute effectively.
- Early institutional capital in frontier strategies will likely come from single-family offices and early crypto investors rather than traditional endowments or pensions.
- Operational due diligence—including counterparty credit risk, custody arrangements, and infrastructure quality—is critically underdeveloped in crypto fund evaluation.