With the increasing attention of cryptocurrencies around the world, venture capital funds born around crypto projects have exploded. At the same time, the scale of funds of hundreds of millions of dollars also means that large-scale venture capital funds focusing on cryptocurrency is forming.
Golden Finance and Economics found that after entering 2022, various cryptocurrency funds launched by venture capital institutions have exceeded 10 billion US dollars. Among them, there are many well-known investment institutions, including Sequoia Capital, Bain Capital, etc.
Among them, it is worth mentioning that Sequoia Capital, a 50-year-old company that has never opened a specific industry fund before, set aside $500 million to $600 million for a new fund in February this year, mainly investing in Cryptocurrency tokens traded on third-party exchanges.
Sequoia’s latest move is just a microcosm of VC interest in cryptocurrency startups. More and more institutions are joining the ranks.
In February of this year, Ark Invest has applied to launch ARK Venture, a venture fund that will invest in companies involved in disruptive innovation, including those developing, using or relying on blockchain technology, and possibly through investments in the Grayscale Bitcoin Trust (GBTC). ) indirectly invest in cryptocurrencies such as Bitcoin.
In addition, statistics show that among the listed venture capital funds, the focus of the track mainly focuses on web3 infrastructure and applications such as games, Metaverse, and decentralized social networking. Only a few focus on stablecoins, public chains and other tracks.
From 2021, Web3 has become a buzzword in tech, crypto and venture capital. Web3, or Web 3.0, is the next stage of the constant iterative upgrade of the Internet paradigm from Web 1.0 to Web 2.0.
Although it is still a vague concept, in the vision of Web3 advocates, it is a utopia of Internet idealism, a decentralized Internet based on blockchain technology, which will subvert Google, Amazon, BATJ and other technology giants. Internet monopoly.
On March 11, prominent venture capital firm Bessemer Venture Partners has committed $250 million from existing funds to invest in Web 3 projects in three core areas: consumer decentralized finance (DeFi), infrastructure and Other “Supporting Technologies”. Bessemer’s commitment comes at a time when more high-profile venture capital firms such as Sequoia Capital and Bain Capital are entering the crypto space.
In an announcement blog post, the Bessemer team noted: “It is clear that we are now at the beginning of the next sea change: a new iteration of the web based on blockchain technology. Web 3 is an ecosystem that we believe will require decades of transformation. , we are passionate about partnering with the most talented founders to build this new future.” Bessemer Venture Partners is no stranger to the cryptocurrency market, having previously invested in NFT marketplace MakersPlace, fantasy football game Sorare, blockchain intelligence firm TRM Labs etc. Web3 project.
As more institutional capital flows into the Web 3.0 ecosystem, corporate valuations will be inflated and competition among VC funds will intensify. For funds, differences between different verticals such as stage: early vs. late, geography, added value such as token economics, governance, liquidity will be key.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/over-100-million-us-dollars-of-crypto-funds-frequently-appear-on-the-web3-to-focus-on-the-track/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.