ParaFi ex-partner's Inversion Capital will give a crypto makeover to traditional businesses

Quick Take

  • Web3 investor and ex-ParaFi Capital partner Santiago Roel Santos announced the launch of Inversion Capital, a new private equity fund designed to acquire traditional businesses and transform their operations by adopting crypto. 

Web3 investor Santiago Roel Santos is betting that giving traditional businesses a crypto makeover can help them operate better, faster, and cheaper. 

Santos, who was formerly a partner at blockchain VC firm ParaFi Capital, announced the launch of a new private equity fund, dubbed Inversion Capital. The fund will "acquire traditional businesses that can benefit from business model transformations by adopting crypto mechanisms," Santos announced on X

Santos argues that there are some businesses who would benefit from adopting crypto-powered tools in order to solve coordination issues that "show up as higher operating costs, capital expenditures, or degrading unit economics." 

It doesn't matter if the business owners are reluctant to embrace crypto, Santos explained, because Inversion Capital won't be an investment partner—it will acquire the businesses outright. 

"There are many great businesses that have reached a plateau and are prime candidates to undergo a business model transformation," Santos said. "You’re already seeing that with DePIN."

Santos didn't elaborate on how much he aims to raise with the fund or whether he has selected any initial targets. 

"Crypto is a new operating system. Invisible, running on the backend making businesses operate faster, better, cheaper. This is how we accelerate," Santos said in closing. 


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About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].