The ongoing crypto winter has so far been difficult for investors, but for true believers in new technology, it seems like it’s time to double down on projects with high potential. US fintech-focused venture capital firm Lightspeed Venture Partners has announced the launch of a new blockchain-focused team – Lightspeed Fraction – to invest in early-stage blockchain projects.
A new team for Crypto Investments
The news comes with Lightspeed Venture Partners unveiling three new US funds that have, in total, raised $6.6 billion and a $500 million fund focused on early-stage Indian startups. Currently, the venture capital firm manages $18 billion in assets.
The decision to bet big on blockchain companies aligns with the investment thesis that the technology is “changing how network participants are incentivized, how startups within this ecosystem are funded, and how communities can unite their shared power to create change,” the firm said.
The VC began investing in cryptocurrencies in 2013, seeing digital assets as a key technology that provides unprecedented opportunities for the “underbanked”. Where unbanked population in the world. Lightspeed partner Ravi Mhatre said:
“We believe the industry is still at the beginning of the transition from web2 to web3, and the collaboration between Lightspeed and Faction demonstrates our shared belief in how cryptocurrency can help build a web that better serves people. underserved around the world. ”
Fundraising in the middle of the bear market
On the same day, crypto-focused VC Multicoin Capital also reported raising $430 million for its third fund for blockchain startups. The amount jumped 4.3x from the $100 million raised for its second fund.
The company started raising the fund in the fourth quarter of last year and closed it in January this year, according to a news outlet. report. Additionally, start-ups are expected to receive $500,000 to $25 million, and later-stage projects would receive $100 million or more.
It should be mentioned that the co-founders of Multicoin Capital, Kyle Samani and Tushar Jain, are the biggest limited partners of the fund. Samani noted that the current bear market does not change the company’s strategy of aggressively investing in Web3 and blockchain companies.
In terms of company in difficulty 3AC having a stake in one of Multicoin Capital’s funds, which makes people wonder if such exposure could cause financial stress on the company, Samani clarified that it had “absolutely no impact” on MC .
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% fee discount on Binance Futures for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.