CoinFund, a blockchain venture firm, has come up with a new investment fund for Web3 and crypto-focused startups. The fund was made possible by a combination of institutional investors, family, and crypto entrepreneurs. It has brought in fresh funding opportunities for entrepreneurs during this difficult bear market.
The CoinFund Ventures will invest $300 million into early-stage companies at the intersection of Web3, cryptocurrency, and other blockchain sub-sectors. The firm is more than three times bigger than its 2021 crypto startup fund which was valued at $83 million. CoinFund’s new investment fund reflects the firm’s belief that Web3 marks the architectural transition for the new internet. Web3 is basically the next iteration of the internet. It’s powered by blockchain technology and tokenized assets.
Moreover, Web3 projects have drawn backing from the venture capital community. The startups represented about 42% of individual funding deals, in the second quarter of 2022, in the crypto sector. But Web3 ecosystems are still very much in the nascent stage and many projects haven’t been built for utility.
David Pakman, CoinFund managing partner and venture investing head, said the fund will invest in companies showing commercial traction that also belong to a crypto sector with a large total addressable market. He shared that CoinFund saw a hole in the market and felt that the firm could be effective and helpful at that stage, thus raising an early-stage fund. Pakman said the company has existed through three downturns. He highlighted that the new fund has six to eight-year lifecycles. The executive believes that these kinds of market swings are of par for the course. He said the markets will cooperate at some point if one is focused on building something important that will capture lots of value over time.