Garry Tan’s 2013 investment of $300K in Coinbase is now worth $2.4B


Garry Tan, a distinguished angel investor and the founding father of Initialized Capital, was one of many first buyers to offer seed funding to Coinbase eight years in the past. 

Lower than a decade later, and after immediately’s extremely anticipated Nasdaq itemizing for Coinbase’s COIN inventory, Tan’s 2013 funding of $300,000 into Coinbase is now price $2.4 billion.

Coinbase debuted on the Nasdaq on April 14 at $381 per share, making it probably the most hyped listings within the U.S. inventory market of the yr.

How did $300,000 turn into $2.4 billion?

In 2013, when Tan invested in Coinbase, it was unclear whether or not Bitcoin can be acknowledged as a world asset and a longtime retailer of worth.

On the time, there weren’t many respected exchanges, and the few that existed had been typically hacked. Tan’s funding befell earlier than the monumental Mt. Gox hack that noticed billions of {dollars} price of BTC stolen.

Even after launch, Coinbase was not all the time in an uptrend. In keeping with Coinbase co-founder Fred Ehrsam, from 2014 to 2017 the corporate confronted quite a few hardships. 

Ehrsam said:

“Over time, crypto grew, and so did the corporate. A easy #Bitcoin pockets developed into particular person and institutional merchandise to help a blossoming cryptoeconomy. 2 nerds who met on the web (sure, @brian_armstrong and I met on @reddit ) become an organization of 1000+. There was critical hardship. Within the 3 years between 2014 and 2017, the skin world thought crypto was lifeless. Over a 3rd of staff left. But crypto stored constructing. @ethereum got here on the scene and confirmed that crypto native functions had been doable, opening up an entire new world of prospects.”

Even when the itemizing fails to impress, Coinbase has alluring financials

Coinbase is the primary publicly listed main cryptocurrency trade within the U.S. inventory market and its availability on Nasdaq now supplies mainstream buyers with publicity to the crypto sector. Even when the itemizing fails to impress on day one, the corporate nonetheless has sturdy financials and consumer metrics.

Coinbase made $1 billion within the final quarter and has extra customers than each monetary establishment within the U.S. aside from JPMorgan, making it a extremely compelling commerce for buyers within the conventional monetary market.