To Back Crypto Startups VC Firm CoinFund Raised $158 Million
VC firm CoinFund has raised $158 million to back the crypto startups that are in their early stages, the firm is set to report on Tuesday, Bloomberg writes.
Global venture fund investments in crypto startups have perished for five succeeding quarters data show, even then some venture capitalists are putting million on blockchain.
Jake Brukhman, the Chief Executive Officer stated that the newly raised funds are more than the funds that CoinFund set to raise. Further added that the New-York based company has received more interest than anticipated, which was $125 million.
One and a half year in the crypto industry has been pronounced by apocalypse, the collapse of the TerraUSD stablecoin, the demise of hedge fund Three Arrows Capital, the departure of digital asset exchange FTX, the dissolution of lender BlockFi Inc., and the failure from raising interest rates. Bloomberg disclosed in its report by adding that over that period, CoinFund has led to raise $550 million, Brukhman stated.
Furthermore, he said that 2022 was an unexpectedly hard year. The dilemma is that the key market players had been taking interest in crypto at that time as before but withdraw when prices fell off.
CoinFund’s new investment project is its fourth seed fund. By using its initial funds, the firm backed startups such as Dapper Labs, the creator of the NBA Top Shot nonfungible token collection, and Blockdaemon, a blockchain structure provider. The latest investment projects have already invested in Giza, a startup to launch AI to elegant contracts, and Superstate Inc., aims to collaborate decentralized finance with mutual funds, Bloomberg reads.
CoinFund would focus on startups that combine crypto and AI with its new capital allocation. “Some of the more consumer stuff is a little bit in a lull, like if you look at the NFT space,” Brukhman said, referring to hot corner of crypto market that has seen sales volume crash, Bloomberg published.
CoinFund would carry on making investments in token. Regulatory unreliability has whirled around whether crypto tokens are contemplated securities, a federal judge of US Securities and Exchange Commission, currently ruled in a lawsuit counters Ripple Labs that when company’s XRP token sold to institutional investors it would be a security. And CoinFund is a registered investment consultant and could do security investment.
Moreover, Bloomberg revealed that nearly 90% of the CoinFuunds’ dealing encompass tokens, said CoinFund Chief Investment Officer, Alex Felix. Flix added that the firm still assumes that the industry could collaborate with conventional finance in a regulated way. They are not trying to develop a parallel universe, further stated.
