The purpose of Client Tell is to spotlight the incredible work of our clients and to help businesses learn from and connect with each other. We sat down with David Yerger, CEO of Redwood Digital Group, a company that manages a diversified portfolio of public cryptocurrency assets for investors.
A Front Row Seat
Connecting to the blockchain or investing in cryptocurrency is as intriguing as it is challenging to potential investors. The space is continually evolving, and with no regulatory body, the process can be confusing and uncertain. But, David Yerger, CEO of Redwood Digital Group set out in 2017 to make it not only possible but easier for people to get involved and diversify their portfolio.
Born in Jackson, Miss., David’s career started with managing three businesses after college, but his move to California with his then-fiancee is what opened the doors to the cryptocurrency space for him. He began working with BitGo., a cryptocurrency security company, “As they were one of the largest companies in the crypto and blockchain space, I got a front row seat to the growing industry. I worked for them for about a year and a half as one of two guys on the business team.”
David sold software to the world’s leading cryptocurrency and blockchain exchanges, and built great relationships in the blockchain ecosystem. He met with founders, central bankers, spoke at conferences, and looking back realizes how fortunate he really was. “There’s a lot of confusion about what a blockchain is and the different types of networks,” says David, “People think every cryptocurrency business is involved in shady, illegal activity. But, when you look at the data, that’s simply not true. In fact, less than 1% of the network transactions are illicit or illegal, and compared to cash, it’s much better. It is a digital way to send and receive value that can’t be replicated.”
Switch the Light On
David began sharing his knowledge with his father and friends, encouraging them to get some exposure to the space, “They became more and more interested, and wanted to put capital to work individually, but it’s hard to do something like that for someone else when it involves money and there aren’t regulatory pieces in place. Cryptocurrencies aren’t super easy to acquire in bulk or secure properly. Naturally, his network came to him and said “These are problems, can you do this for us?” The answer was YES.
David founded the Redwood Digital Group and Redwood Digital Fund I, LP to offer exposure to the space for investors looking to add these assets to their existing portfolios. In the beginning of 2017, it was just him; relying on his drive and passion for executing the idea – a cryptocurrency index fund.
Pivoting for Success
But, soon after, David reached out to a previous connection, and invited him to join the team. The company is now a team of four and pivoted to being more of a trading specific operation.
Redwood Digital Group trades and algorithmically lends crypto assets, trading in a way to still offer significant upside to the space, while reducing the downside via diversified momentum trading systems.
“I knew we needed legal support pretty early on, “ says David, “It’s a huge legal process to get a fund up and running. You need two different parties: hedge-fund specific lawyers to do your documents and ongoing legal counsel. That’s where Fourscore came in. They’re a knowledgeable group and curious about the space.”
To learn more, visit RDG.FUND.