Andrew Hoppin is a professional investor, a civic tech entrepreneur contributing to open-source projects, and a former Chief Information Officer (CIO) in the government. He is passionate about supporting ventures that strive to create a more decentralized, egalitarian, and democratic world. Hoppin is the Chief Investment Officer at Hyla Fund Management, a leading blockchain technology investor. He co-founded the Board of CoverUS, a digital health company whose mission is to drive a more efficient and effective US healthcare system by putting patients in control of their health data. Hoppin is a Global Impact Entrepreneur and a Board Member of New Zealand's Edmund Hillary Fellowship. Additionally, he serves on the Board of Humanity in Action.
Can you talk about your journey in the industry? What does your day-to-day work look like?
We are a small organization working closely with around 15 people, with half of them comprising a full-time core team, giving us a startup culture for six years. Our expertise lies in managing and running hedge funds and funds that invest in blockchain technology, web3 cryptocurrency, and the digital assets domain. We primarily invest in other fund managers with specialized investment strategies in this industry and assemble a basket of those managers to help us better manage risk.
My day typically begins with startup organizational management and team-building, establishing relationships with peer groups, and community building. As a company, we collaborate with other firms in our industry, invest in fund management, and actively participate in building relationships in the broader community. Then, I focus on sales and marketing, spending time with prospective investors, republishing leadership pieces, conducting interviews, and transparently reporting our fund's performance to databases and online platforms. Additionally, I allocate some of my time to legal, financial, and regulatory compliance-related work, ensuring we adhere to all best practices.
My favorite part of the day is my role as chief investment officer, where I search for investment opportunities for our products. We closely collaborate with specialized fund managers to create a diverse basket of funds and continually strive to enhance its composition. Moreover, we maintain regular communication with the fund managers we invest with to monitor their performance.
Could you share with us the current challenges prevalent in the fund management and investment space?
There are numerous challenges for fund managers investing in the blockchain tech industry, crypto, web3, and digital assets. As the asset class is young, with regulatory uncertainties and rapid technological advancements, building good products is complex and requires managing many underlying investments. Our industry moves fast and has less historical data, making it challenging to execute investment strategies.
“The underlying technologies in which we invest, particularly blockchain technology, are improving rapidly and becoming more mature, making it easier to identify use cases and game-changing technologies.”
We originated primarily from building entrepreneurial open-source software companies and then implementing open-source software portfolios within governments, so we didn't have the traditional finance culture or knowledge base to rely on when we started.
Macro market conditions play a significant role in our success, making it challenging to raise capital and target markets. Our product is a financial market product, making it difficult to anticipate external forces affecting performance. Despite these challenges, our job is to define strategies that allow us to make money for our investors.
In light of these challenges, are there any recent trends or developments in the market to mitigate them?
As a manager of investment fund products, particularly in blockchain technology, digital assets, cryptocurrencies, and the web3 industry, we now have a clearer regulatory landscape that provides clarity regarding risks. Reasonable regulations protect everyone; more explicit regulations give investors, entrepreneurs, and governments more clarity.
The underlying technologies we invest in, particularly blockchain technology, are improving rapidly and becoming more mature, making it easier to identify use cases and game-changing technologies. While many ideas still require technological innovation, we are closer to making them a reality with more mature technologies to build them on top of. This progress is beneficial when investing in early-stage teams and technology as venture capital.
Our products and services have become easier to manage, and the tools to build a startup business are improving, becoming more mature, and more affordable. With banking services like Mercury Bank, entrepreneurs can quickly obtain a bank account without going through physical paperwork. Additionally, other services like omnichannel marketing platforms are becoming more accessible. It is a great time to be an entrepreneur, with smaller gaps between large corporations and small startups.
What piece of advice would you give to your peers and upcoming professionals?
Entrepreneurs should seek guidance from experienced mentors and remain humble and open to advice. While confidence is beneficial, it's equally important to be vulnerable and humble to succeed in business. Seeking help, advice, and support from experienced individuals can help avoid significant problems and achieve better outcomes more swiftly. Many people are generous with their time and eager to offer free advice, so take advantage of their expertise. Additionally, it's important not to follow the crowd and pursue every new opportunity. Instead, look for hidden opportunities that others may overlook or avenues where you can truly make a difference. For instance, blockchain technology startups were unpopular a year ago but are now gaining traction. Focusing on unpopular areas can address crucial problems with less competition. Similarly, working within a dysfunctional organization can present an opportunity to make a significant impact because the standards are typically low. In conclusion, entrepreneurs should seek advice from experienced mentors, remain humble and open to advice, and concentrate on opportunities that others may overlook.
