On March 22, according to Coindesk, citing sources, Bridgewater Associates, with a total asset management scale of $150 billion, plans to support an external crypto investment fund , which will begin to involve the crypto sector, afterits president Ray Dalio publicly stated that own bitcoin.
And on March 23, The Block reported that Haun Ventures, a venture capital firm led by former a16z partner Katie Haun, has also raised $1.5 billion for its two crypto-focused venture capital funds, of which $500 million will be used For early-stage investments, $1 billion goes to an “accelerator” fund.
Sequoia Capital, the big money “All in Crypto”
The wind started at the end of Qingping. Recently, especially since 2022, the venture capital giants who have shined in the traditional Internet era have begun to appear more and more in the investment and financing events in the encrypted world, and even directly. Establishment of related investment funds in the field of encryption (some directly invest in encrypted assets), and start a large-scale layout.
Among them, the most obvious action is undoubtedly Sequoia Capital, which has frequently issued high-profile All in Crypto and Web3 signals since last year:
On December 8, 2021, Sequoia Capital changed its Twitter profile to ” Mainnet faucet. We help the daring buidl legendary DAOs from idea to token airdrops. LFG ” Airdrop) – although it’s changed back now.
On February 18 this year, Sequoia Capital directly launched an encrypted asset investment fund of US$500 million to US$600 million, which is also the first industry-specific fund of Sequoia Capital since its establishment in 1972.
In addition to the crypto asset sub-fund, Sequoia will continue to invest in crypto asset startups through its main seed, venture, growth and expansion funds, which have a combined capital commitment of more than $7.5 billion.
Sequoia Capital mainly invests in liquid tokens, including those listed on crypto asset trading platforms and those that have not yet been listed. The investment scale of a single project ranges from 100,000 to 50 million US dollars , and plans to participate in everything from staking to providing liquidity to Governance and other processes.
Sequoia Capital has been investing in the crypto track in equity and token trading since 2014, with 20% of its new investments in the US and Europe last year in crypto projects , with a portfolio that includes Filecoin, FTX, Fireblocks, StarkWare, BitClout, Iron Fish, Parallel Finance, and more.
Additionally, Sequoia is particularly interested in cross-chain interoperability and the GameFi project, and believes that multi-chain is the future , and Sequoia is monitoring developer activity across networks, including Terra, Avalanche, NEAR, Polkadot, and Cosmos.
Venture capital funds running into the market
In fact, before 2021, only Grayscale will act as an intermediate channel for qualified investors and institutions to intervene in the Crypto market in the entire crypto industry , realizing the weak connection between investors and crypto assets, and opening up the direct entry of incremental OTC funds. channel.
Now, with the successive launch of crypto-asset-related ETFs, and the rapid changes in the market’s perception and attitude towards crypto-assets under continuous innovation (DeFi, Web3) and volume growth, the “institutional” attribute of the entire crypto-industry is significantly increasing.
One of the most direct manifestations is undoubtedly the formation of large-scale venture capital funds focusing on crypto assets with hundreds of millions of dollars in capital.
In February of this year, Ark Invest applied to launch ARK Venture, a venture fund that will invest in companies involved in disruptive innovation , including companies that develop, use or rely on blockchain technology, and may also invest in Grayscale Bitcoin Trust (GBTC) ) indirectly invest in crypto assets such as Bitcoin.
Immediately after entering March, the speed at which traditional institutions and capital entered the game began to be dazzling:
- On March 7, DRW Holdings, a large trading company, began to provide over-the-counter bilateral options trading services for encrypted assets. Its target users are Bitcoin miners and investors of encrypted assets who need to hedge risks or generate returns. The product allows traders to customize each transaction. the expiry date, strike price and underlying token of the transaction;
- On March 8, Bain Capital Ventures, the investment company of Bain Capital, an American private equity investment company, launched a $560 million crypto fund, which will invest in about 30 companies in the next few years. It has invested about $100 million. funds;
- On March 10, the CEO of Z Holdings, a subsidiary of SoftBank Group, revealed that Z Holdings plans to launch NFT markets in 180 countries around the world this spring, and will spend heavily to double the number of users of its payment app PayPay to 90 million. ;
- On March 11, venture capital firm Bessemer Venture Partners has committed $250 million from existing funds to invest in Web3 projects in three core areas: consumer decentralized finance (DeFi), infrastructure and other “backed” projects. Technology”;
- On March 16, Japanese social giant LINE cooperated with 26 companies including Visa and Crypto.com in the fields of games, comics, entertainment, Metaverse, and art, and planned to establish a global NFT value chain;
- On March 21, Goldman Sachs announced its first over-the-counter cryptoasset transaction with Galaxy Digital, via a non-deliverable foreign exchange option on Bitcoin, representing the bank providing its clients with direct, customizable exposure to cryptoassets the first step;
Most of the venture capital institutions started investing in the encrypted track in the middle of last year, and mainly focused on CeFi and infrastructure projects, and often appeared as lead investors.
The encrypted world and the traditional financial world, through each other’s VC investment, seem to be gradually becoming deeply intertwined.
What do traditional VCs have in mind?
Institutional investors continue to enter the crypto asset market, or the “Institutionalization” of the crypto asset marketwill be an unstoppable trend.
So for these traditional VCs, what are the crypto investment themes that attract their attention the most in the crypto world?
From the perspective of specific projects, the investment types of traditional institutions almost cover most of the mainstream tracks, including Layer1, Layer2, NFT, CeFi, DeFi, Privacy, Web3, SocialFi, etc. , and almost all have their own preferences:
- For example, Goldman Sachs seems to be in love with the encrypted data track, and has successively invested in the blockchain infrastructure service provider Blockdaemon and encrypted data company Coin Metrics in its current Crypto layout;
- SoftBank likes leading or star projects in various tracks , such as trading platform FTX, Grayscale parent company DCG, sandbox game The Sandbox, public chain Polygon, etc.;
- Lightspeed Venture Partners prefers the underlying infrastructure , such as Terra developer Terraform Labs, crypto asset market maker Wintermute, Web3 development platform Alchemy, Web3 infrastructure developer Mysten Labs, Layer2 solution Arbitrum, etc.;
In addition, NFTs are unanimously favored by the majority of institutions. Just a few days ago, Yuga Labs, the issuer of Bored Ape Yacht Club, completed a new round of financing of US$450 million at a valuation of US$4 billion , which is also the largest in the NFT industry so far. Financing, this round of financing was led by a16z. In addition to the common venture capital in the crypto industry, there are many “traditional forces” such as Samsung, Google Ventures, and Tiger Global.
In general, the compliance of the encrypted trading system has laid the foundation for institutional investors to enter the market . Therefore, to a certain extent, the traditional institutions and capitals who are running a lot of money today show that the encryption market is accelerating from the side. Compliance and moving towards the mainstream (even in the form of “alternative assets”).
” Crypto assets will become the biggest trend in the next 20-30 years “, facing the increasingly certain and running entry of traditional institutions and capital, the encrypted world is ushering in its own critical moment.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-traditional-venture-capital-institutions-that-are-running-and-entering-the-market-want-to-eat-the-new-head-of-the-entire-encryption-industry/
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