Coinbase’s Expert Tips series interviewed Ben Forman, managing partner of ParaFi Capital, a fund focused on blockchain technology and decentralized finance (DeFi). Forman founded ParaFi in 2018 after roughly a decade in traditional private equity and credit markets at firms including KKR and TPG — a background that’s informed how he evaluates DeFi as an emerging asset class. See the source link for his full interview and specific tips.
Key Takeaways
- Forman’s career path — moving from traditional private equity into DeFi-focused venture investing — reflects a broader trend of experienced traditional finance professionals bringing institutional rigor to crypto investing.
- A background in evaluating traditional credit and equity markets can translate into more disciplined due diligence frameworks when applied to DeFi protocols and tokens.
- DeFi specifically has attracted specialized investors precisely because evaluating protocol mechanics, tokenomics, and smart contract risk requires different expertise than traditional public equity analysis.
- The full interview (linked below) covers Forman’s specific research process and market views in more depth than we can properly summarize here.
Our Take
What’s broadly instructive about career paths like Forman’s — moving from traditional private equity into specialized DeFi investing — is what it signals about how the skill set required to evaluate this asset class has matured. DeFi investing increasingly rewards the same rigorous due diligence disciplines (understanding cash flows, governance structures, competitive moats) that traditional private equity and credit investors have applied for decades, with additional crypto-specific risks (smart contract exploits, regulatory uncertainty, protocol governance) layered on top.
For everyday investors without an institutional research team, the practical takeaway isn’t to replicate a venture fund’s due diligence process wholesale, but to borrow the underlying discipline: understanding what a protocol actually does, how it generates value, who controls it, and what could go wrong, before allocating capital.
FAQs
What is DeFi, and why does it attract specialized investors?
DeFi (decentralized finance) refers to financial services built on blockchain protocols instead of traditional institutions. Evaluating it requires understanding protocol mechanics, tokenomics, and smart contract risk.
Where can I read Ben Forman’s full interview and tips?
The full interview, with his specific research strategies and DeFi market views, is available at the original source article linked below.
📎 Source: Coinbase Learn — Expert tips: A former private equity manager who now funds DeFi tech
