Top Crypto VC Says Ex-General Partner Made Undisclosed Side Deal With Portfolio Company
Polychain accuses former employee Niraj Pant of making a backroom deal with portfolio company Eclipse Labs, violating the fund's policies. Pant received a 5% allocation of Eclipse crypto tokens, later reduced to 1.33%, worth $13.3 million. Polychain claims it was unaware of Pant's financial stake in Eclipse until after he left the firm. The episode sheds light on the opaque dealings in the crypto industry and the unique fundraising norms. Eclipse's token allocations were crucial as few investors received equity in the project. Pant insists his advisory agreement with Eclipse was above board. The situation is remarkable as Pant is also the founder and CEO of Ritual, one of Polychain's portfolio companies. Polychain declined to comment on whether its relationship with Ritual has changed as a result of Pant's supposed policy breach. Despite the alleged breach, Polychain's investment in Eclipse has increased in value 10-fold since the initial investment in 2022.
