Why Did Chapter One Decide Not to Be a Crypto-only Firm?

Jeff Morris Jr says Chapter One's biggest moment was refusing to become a crypto-only firm, right after the crypto book in fund two was marked at 22x.

In 2021 the world was shifting toward crypto companies, and the firm asked whether it should focus only on that. The market turned in 2022, and the answer was no. The decision was not to brand Chapter One as any one kind of firm. He does not want a deep-tech-only fund or a single-theme fund. The franchises he thinks last are generalists. USV is thesis-driven and still a generalist. A firm has to change with each vintage if it wants to stay relevant. He has watched many firms overrate an AI-firm brand over the past three or four years. The label can work as a first message, and then the firm has to evolve.

He thinks about building a venture firm the way a company goes to market. A theme helps at the start. After a win, the firm expands into a new area, usually by winning once in that category and hiring people who already know it.