Benchmark’s Approach to Crypto Takes a Page From Web 2.0

In the past year, venture capital firms with dedicated crypto arms like Andreessen Horowitz and crypto specialists such as Paradigm have gobbled up some of the hottest startups in the industry. Benchmark’s approach has been more of a nibble: The blue-chip VC firm has invested in just two new crypto startups during the same period.

That limited activity doesn’t reflect a lack of interest: Benchmark general partner Sarah Tavel, in an interview with The Information, said she now focuses almost all her time looking at crypto investments. And while Benchmark will never do the dozens of deals inked yearly by some rivals given its relatively small size, she said its “superpower”—helping build Snap, Twitter, and other Web 2.0 companies that remain prevalent today—will give it an edge with the new wave of crypto startups.