The ongoing cryptocurrency has been uncomfortable for investors so far, but for true believers of the new technology, it’s time to double down on their efforts on high-potential projects. Fintech-focused US VC firm Lightspeed Venture Partners announced the launch of a new blockchain-focused team – Lightspeed Fractions – to invest in early-stage blockchain projects.
A new team for crypto investing
The news comes with the unveiling of three new US funds from Lightspeed Venture Partners, which have raised $6.6 billion in total and a $500 million fund focused on Indian early-stage startups. Currently, the VC firm has $18 billion in assets under its management.
The decision to bet big on blockchain companies matches the investment thesis that technology is “changing how network participants are incentivized, how startups are funded within this ecosystem, and how communities can create change.” to combine their shared strengths,” the firm said.
VCs began investing in cryptocurrencies in 2013, regarding digital assets as a major technology that offers unprecedented opportunities for “underbanking”. either Unbanked” population around the world. Ravi Mhatre, Partner, Lightspeed, said:
“We believe that the industry is still in the transition from Web 2 to Web 3, and the collaboration between Lightspeed and Faction is a testament to our shared belief that cryptocurrency can help develop a web that is less serviceable around the world. provides better service to the people.
Fundraising in the midst of a bear market
On the same day, crypto-focused VC Multicoin Capital also said that it has raised $430 million for its third fund for a blockchain startup. This amount has increased 4.3x from the $100 million raised for his second fund.
According to a media report, the firm started raising funds in the fourth quarter of last year and closed it in January this year. In addition, early-stage companies are expected to receive $500,000 to $25 million, and later-stage projects will receive $100 million or more.
Notably, the co-founders of Multicoin Capital, Kyle Samani and Tushar Jain, are the largest limited partners of the fund. Samani added that the current bear market does not change the company’s strategy to aggressively invest in Web3 and blockchain companies.
With reference to troubled firm 3AC’s stake in one of Multicoin Capital’s funds, making people wonder whether such exposure could cause financial stress to the venture, Samani clarified that it would have “absolutely no impact” on the MC. ” was.
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