CoinFund Ventures I will invest $300 million into early-stage crypto companies, financed by a combination of institutional investors and cryptocurrency entrepreneurs.
In establishing the fund, CoinFund Ventures I hopes to open more opportunities for funding during the bear market for companies just getting started in the sector.
“The job of this venture fund would be to determine the teams that want to build big things that are intersecting with adoption,” said CoinFund Managing Partner David Pakman.
However, Pakman has identified the sub sectors in which CoinFund finds promising. “Layer-1s, DeFi [decentralised finance], NFTs [non-fungible tokens], gaming, Web3 infrastructures — such as stablecoins and payments, asset management and exchanges and on-ramp crypto wallets — are all showing promise today.”
The New York and Miami-based firm has said that several of their seed-stage investments and portfolio companies are preparing for Series A funding rounds, but have not made any names public.
CoinFund has previous history with regards to investing in seed-stage Web3 startups, with their first initiative in 2015. In 2021, CoinFund debuted a $83 million crypto startup fund, and was an investor in Rarible and Solana Labs’ $314 million private token sale. The startup fund was CoinFund’s third successful venture capital raise.
Web3 continues to be a buzzing sector in receiving support from investors and the venture capital company. Within Q2 2022, 42% of individual funding deals have been towards Web3, as VCs have shown increased interest in the concept of the metaverse.
However, the public definition of Web3 can vary from person to person. With a common thread that the internet as Web3 will be powered and structured around blockchain technology and digital, tokenised assets.
Despite massive support from many investors, the new vision for the internet still is in its infancy. In establishing CoinFund Ventures I, CoinFund said that the decision to invest will aid the “architectural transition” towards Web3. However, Raymond Liao, managing director at Samsung Next, has highlighted that many Web3 projects have not yet been built for utility.