How To Spend A Billion Dollars | EOS VC | Tama Churchouse Interview (2020)
Tama Churchouse is the man with the billlion dollar chequebook and set with the task to invest into the EOS projects. Want to know what a VC with $1 billion is investing into?
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A lot of people just don’t understand, you know, especially from traditional finance, they don’t understand that like, why would you pay $1,000 for your character to have a Louis Vuitton Tom bag? I mean, it doesn’t make sense.
It’s like, well, you pay that for your wife’s one. So you know, just because it’s in real life, you know, it’s the same things applied the same vanities apply.
So one lasts longer. The TraderCobb crypto show talking business in blockchain.
Today, I’ve got a gentleman who is from New Zealand, you’re not going to get that when you hear his accent. But I’ve got with me at Tama Churchhouse who is the vice president of EOS VC, thank you very much for your time. It’s great to be here thanks.
Mate we’re not gonna talk about EOS token I have no interest in that right now. No offense to anybody had that involves EOS or EOS itself, or to Brock sorry Brock, so it’s more about what you guys are actually doing.
Right. And that’s pretty much it. We have a number of partner funds, Galaxy etc in the US and a few others. The main core of that is managed by a team out of Hong Kong, led by founder and we operate really as a traditional VC. That’s pretty much it. And we’re really looking for, you know, looking good companies, users *inaudible* and that’s that.
So tell us a little bit about EOS VC and what its role is really. Sure. So, throughout the token sale 2017 2018 EOS brought in just over 4 billion in revenue. And a billion of that was earmarked towards supporting companies that are building on or using EOS on their own platform.
And I mean thank you for making nice simple strategy for songs. We didn’t have to go into too much dates on something that is quite a simple answer. So I appreciate that sometimes it takes a very long time.
But what have you done so far? I mean? You know, where have you invested it, have you found that there’s been a theme with the investments leading up to where you are now?
Yeah, I mean, very much so if I look at the last 12 months, it’s really been dominated by the gaming space.
And kind of our, you know, our partner funds and kind of the whole ecosystem. It’s mainly been, I would say, the biggest sector within blockchain as it work is the gaming space. And that’s really driven by you know, the NFC side of things and we think it’s a very low hanging piece of fruit in terms of, you know, the first kind of broader vertical vertical it’s going to get, you know, shifted by blockchain.
So that’s where, number one the second thing we’re really starting to look at now is more supply chain logistics. Yeah, a little bit boring. But you know what, these are existing businesses. That can be upended pretty quickly. So that’s kind of what we’re doing at the moment.
As I was speaking to somebody in Australia. Not too long ago, I was speaking about perishables. So you’re selling meat from, say, Australia to Japan, stops at ports are in Indonesia, all of a sudden that, you know, the freezer shuts down, will this end say no, we sent a frozen this end saying well we didn’t get a frozen, who’s to blame? And how’s it working?
There’s ways around that. That’s the whole, as you say, very boring, the massive industry that could use a little bit of help there as well. So I understand that so. But just the gaming side. Do you think it’s being like the Blockchain business model is working?
Well, there’s a lot of gamers were the first into Bitcoin and crypto assets and then much more openly about utilizing it or is it just purely for business plan? The blockchain is behind the back of the business.
So I mean, if we look at the early iteration, and you’re absolutely right, is that you know, gamers were really one of the biggest parts of the early ecosystem and you mentioned Brot for example, yeah.
You know, Brendan, the CEO of Block.one as well has a big long history in gaming. You know, the way we look at it is the first iteration of blockchain games were really very, very simple. You look at CryptoKitties EOS Knights, whatever they are, and these are real kind of pure, outright blockchain games.
They’ve had their time in my opinion, I think what we’re looking for now is a company like one of the portfolio called Mythical games. Okay, that’s a traditional triple A Game Studio. I mean, there’s four X studio heads. I mean, these guys are produce games like Call of Duty, you know, or from Activision guys.
And so that’s really 95%, a traditional triple A gaming studio, but that extra 5% that unlocking with blockchain and NFT’s and the ability to own and trade your own digital assets, and that piece unlocked a huge market that before we’ve not been too, access before.
When we say AAA, we talking AAA like the rating of Dapps. Yes, yeah. Well, yeah, in a sense, I mean, triple A means top quality, what you expect to play on your Xbox, you know, that kind of triple instead of, you know, the smaller gaps that we see now that we maybe don’t have fiddly tight little things that have not yet a humongous, massive revenue generating massive users.
So massive audiences, like as you say Call of Duty. Exactly. Yeah. Well, a lot of these projects that you’re invested in, but I’m asking you this because I know you’ve got the skin on this, you you’re in the depths of it, will they be issuing their own token to the say, buying a new sword or or a skin for the garden? That sort of thing is is that sort of what goes on?
So I mean, that’s a great question, and it’s a huge answer. So I’m gonna try and keep it very cute. It is, I mean, getting to market with the ability for players to actually extract value the whole point about blockchain and digital assets is for the first time in a game, you know, you have ownership like property.
And when you think about it, that’s the title, your property, property rights. When you have that, then you’ve got markets and then you have value, but how do you transact with value you’re going to need fiat at some stage. And where the fiat starts and where the crypto token ends?
Is a big big question. There’s a lot of you know, Anti Money Laundering KYC I think any, any kind of game that launches in a developed market will need to need to consider those are very, very carefully if it’s a simple straightforward Dapp, you know, that doesn’t really exist in a decentralized fashion.
You’re going to get paid in EOS or make your money in Ethereum or whatever it is. There’s less of an issue, but for those triple A games, yes, I mean that KYC AML thing is going to absolutely need to be considered.
Yeah, makes sense actually mean when you think about the the profiles of the player right? I mean, that profile the play as it goes through the ranks, there’s got to be a quality to it. There’s got to be something there. That’s, there’s ownership to it, right?
Like, I understand that side of it by the it’s your character or it’s your gun, or it’s your sword. And it makes sense to me. And I’m somebody who’s not deeply entrenched in the technology of things. I’m a trader. I’m a speculator. I’m an educator, that’s what I do in the space. So yeah, it makes perfect sense.
It’s good that you know, you say that, because a lot of people just don’t understand, you know, especially from traditional finance they didn’t understand that. Like, why would you pay $1,000 for your character to have a Louis Vuitton Tom back?
Yeah, I mean, it doesn’t make sense. It’s like, well, you pay that for your wife’s one. So you know, just because it’s in real life. You know, it’s the same things applied the same vanities apply.
So one last longer. So I mean, it’s, you know, and it’s good that people start to understand that and because what blockchain it does allows you to have Limited Edition in game sneakers or whatever it is.
So you know, the world’s that absolutely shifting in that direction. That’s good that you know that you can understand that there’s a lot of people can’t. Thank you. Made me feel really smart.
So what else? I mean, you’ve been investing in the gaming space, I can’t imagine that you’ve executed all the funds yet and can’t imagine that a lot of longer term things ahead. So let’s talk, let’s talk 12 months from now, as the space evolves as we see more regulation as there’s more businesses actually bringing products to the market rubber hitting the road clients users actually using things that have been created.
Obviously, we know a lot of markets are a lot of these projects are going to fail. 95% of businesses and startups fail anyway. So it’s not too dissimilar to what we’re going to see in crypto. What do you think’s going to be the next thing in 12 months with a progression currently as we see it?
So what I’m still waiting to see is that it is for a big existing blue chip business to effectively reinvent themselves by, you know, putting some part of that process on the blockchain. And that’s kind of because it has the potential to open so many doors that allows you to do things that you couldn’t do before.
But I’ve not seen enough cases of a you know, a 20 $20 billion logistics company or social media company or or any major company say look now but Chris, we implement implemented this, we’re going to get a, you know, an earnings multiple that kind of skyrocket. So whatever it is, I haven’t seen that I think I’m hoping to see that in the next 12 months as the space matures.
And from a investment point of view, that’s kind of what we’re looking for, as well, you know, you know, we’re at a crypto conference and we’re looking at blockchain companies. But, you know, you know, blockchain venture goes well beyond what you would call a blockchain company it is any company that uses blockchain at all to reinvent or you know, improve substantially any part of their business process or their stack.
And there’s just not enough companies that are we’ve got to find them effectively. And that’s really the challenge for us over the next 12 months.
But um, you know, like going back to the first point is, I’d love to see, you know, an S&P 500 company come out and say, Hey, we’re going to do this now and it’s going to make sense and it’s going to add X amount of value to their market kind of becomes whole again, and then you know, and then people will go yes, okay, this is really gonna get for good.
So do you think that maybe we got and I know Libra they’re talking about a cryptocurrency and there’s been a lot of issues and blah, blah, blah, a lot of talking, which I think is good for the space? To be honest, I think that any form of publicity is good to get people talking.
People talk about crypto, they end up reading about it then end up on Bitcoin and they bring them in and down the rabbit hole I go which I think is a wonderful beginning to their education process in this space, do you think maybe a lot of these larger conglomerates, these big international multinational companies are waiting to see what goes on with Facebook?
I know that Cryptocurrency and Blockchain are two very different things. But do you think that they’re waiting for a bit more framework around some of these things? For example, Amazon, I mean, it makes perfect sense for Amazon to issue their own cryptocurrency and offer a 15% discount on product.
If they were to use their own token they consider buying power. Who buys what they can in something like Starbucks as well, they can they can tell you if it’s a rainy day then this person is going to more likely is going to spend $4 more and they’re going to get lunch. So whatever it may be, do you think that they’re holding back and waiting a little bit on whatthe SEC and the glo – Absolutely.
Yeah, I think 100% and, you know, this is, you know, one example, you know, speaking to one of the world’s biggest traditional market makers, and they had a small, you know, OTC crypto desk and it was profitable was very powerful. But it was a very, very bought small part of very rural business. And what I understand is they shut it down.
Why? Not because it was not profitable. Association. And exactly. And it was just because what if the SEC rules against it? So that puts the whole business at risk? And it doesn’t make sense for them. And I think that’s what drives a lot of these companies is these, you know, these are the blue chips, right?
They don’t necessarily move very, very quickly. And unless there is a massive, compelling, massively compelling use case, to implement them into their processes, they’re not going to take it, it can’t be a marginal increment. And that company I talked about, it was a marginal improvement.
That’s why cut it down. So there is risk associated because that, let’s be honest, there’s still not 100% transparency, you know, from a regular slide. So there is a lot of latency still. And that’s, I think, why these guys are just holding back.
Well, I mean, the risk reward ratio needs to be considered a lot times in any business, whether you’re trading or whether you’re running a business, right? And if that little bit of risk is making that little bit of reward, but it’s putting everything else at risk then it’s pretty simple.
Pretty simple. Now final question do you think that because you’re on a I might have heard this wrong so if I did please do correct me you invest only in ecosystems of sorry only in businesses building on the EOS Blockchain.
No convert yet and then that would be very much so it really the mandate is you know, companies that will touch the ESRI ecosystem in some way it could be a private chain it could be on the main net you know, it could be you know.
Let’s say a company is building a multi asset what if support EOS but that fits the mandate so it’s a very wide hoop that you know, that jump is have to jump through and look practical investors we’re not
Surely you gotta expand like, you know. As you know, yes, this is EOS VC but I’m not a maximalist I’m a practicalist. And you know, at the end of day it’s companies who want to use the software as well. Just pay people to to implement it. I mean, that’s just a business case for battle.
Well, sounds like they got the right man for the job in my eyes. Practical thinking easy to communicate with. Then it’s an absolute pleasure meeting with you. As is mine. Thank you. So is there anything else that you want to tell us about that you think’s important before we wrap?
No, really? I wish you asked me that before but this has been great. I really appreciate it. Absolute pleasure meeting you Tama. It’s an absolute pleasure, ladies and gentlemen, thank you very much for your time. Have a fantastic day. Bye for now.
The TraderCobb crypto show talking business in blockchain.
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