Crypto Investment Firm CoinFund Launches $300M Web3 Fund
CoinFund Launches
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Crypto Investment Firm Coin Fund Launches$300M Web3 Fund
Crypto-specific investment firm, Coin fund has inaugurated a $300 million venture capital fund to support early-stage blockchain projects, a sign of investor confidence in a bear market-stricken industry. Coin fund Ventures Eye Fund will invest in companies showing commercial traction, belonging to a crypto sector with a large total addressable market, said David Pak man, Managing Partner and Head of Venture Investments, Coin fund in an interview with CoinDesk.
Areas of interest include Layer 1 blockchain, Web3 infrastructure, non-fungible tokens (NFTs), gaming and asset management. While the value of venture capital investments in the crypto industry fell 26% during the first half of 2022compared to the same period last year, the number of deals remained solid, suggesting a shift towards an earlier smaller funding round. The new wallets were announced a year after the firm raised $83 million for its first venture capital vehicle.
Founded in 2015, Coin fund previously focused on bitcoin and seed stage investments in decentralized finance (DeFi) projects. Portfolio companies include NBA top shot creator Dapper Labs, blockchain infrastructure platform Block daemon and data indexing protocol The Graph.
Successful portfolio companies that went on to raise a Series A round expressed a desire to continue working with the firm, which lacked the vehicle to invest at that stage. Coin fund identified some limited partners backing the new fund such as private market investment firms Adams Street Partners and Stepstone Group, Fund of Funds Accolade Partners and Teachers Retirement System (TRS) of Texas.
TRS became a member of a small but growing number of pension funds investing in crypto. Pak man joined Coin fund last year after spending 13 years at traditional venture capital firm Ven rock. Einar Bra then has now made the same leap in the flow of crypto-native deals from traditional, leaving technology firm Accel to focus on early-stage investments in Coin fund.
When asked about launching a fund during a bear market, Pak man said that Coin fund has existed through three recessions and the new fund has a life cycle of six to eight years. "These types of market swings are par for the course," he said. "As long as you're focused on creating something important that will capture a lot of value over time, the market will cooperate at some point."
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