According to a report by Fortune on September 23, David Gan, a former Huobi employee and one of Forbes Asia’s 30 Under 30 in 2019, founded his own venture capital fund. Initially named OP Crypto, the fund gained attention during the 2021 crypto boom, attracting high-profile investors such as Bill Ackman, Garry Tan, and Alan Howard, who became limited partners in the $50 million fund. However, recent developments have thrown the fund’s future into uncertainty.
The Rise and Fall of the Crypto Fund
Gan’s OP Crypto achieved early success, raising an additional $30 million in early 2024, bringing its total assets under management to nearly $100 million. According to the latest U.S. SEC filings, Inception Capital (the renamed fund) continued to promise strong performance to its investors. However, behind these successes, the internal chaos at the fund’s management level has caused concern among investors.
The Mysterious Disappearance
In May, Gan sent a cryptic email to the fund’s limited partners, shifting the narrative. He revealed that his father, a retired senior Chinese official, was under investigation in Wuhan and that Gan needed to travel to China to assist him. After this email, Gan disappeared for a month, leaving investors in a state of uncertainty. During his absence, some limited partners took action, voting to liquidate the fund in an orderly manner. Upon his return, Gan agreed to step down from several key responsibilities. Inception Capital has since continued managing its assets but agreed not to touch the remaining 25% of uninvested funds.
What Will Investors Do Next?
Inception Capital plans to unveil an official proposal in October, allowing limited partners to invest the remaining funds. However, considering the recent turmoil, many investors may not see this as the most attractive option. The company has suspended further investments and laid off half of its staff, deepening the crisis. The developments have raised questions about Gan’s influence on the fund’s future and left investors uncertain about how to proceed.
Inception Capital must now work to rebuild trust both internally and among its investors. The fund’s future depends not only on Gan’s personal situation but also on how international investors and the market respond. Whether the fund can recover from this situation remains a topic of close scrutiny for both investors and market analysts. Inception Capital may need to reinvent its identity and strategy to regain investor confidence.
