Singapore-based Blockchain Founders Fund has launched a new venture capital fund to support emerging projects in the cryptocurrency, metaverse and Web3 sectors., offering further evidence that investors remain willing to support major growth trends in the digital asset market.
Blockchain Founders Fund II, also known as BFF II, has raised $75 million from a number of investors in the blockchain and crypto industry, including NEO Global Capital, Appworks, Baksh Capital, Octava, and Sebastien Borget, COO of The Sandbox. BFF II has already put capital into 11 projects, including a layer-two derivatives exchange, various play-to-win games, and a DeFi protocol.
BFF II primarily focuses on cryptocurrency, Web3 blockchain, and metaverse projects. The fund is also set to offer another $5 million to successful startups that make it to subsequent funding rounds.
BFF partner Mansoor Madhavji told Cointelegraph that “operational experience” is an important consideration when selecting which companies to support. All companies receiving financial support “have demonstrated strong product-to-market fit [y] they are capable of setting trends in the cryptocurrency space,” he said.
Despite the strong sell-off in the crypto sector, which culminated in Bitcoin (BTC) plunging below $34,000 on Monday, smart money investors are increasingly seeing digital assets as a generational opportunity. Therefore, they are deploying capital in sectors that they believe could reshape the digital economy over the next decade.
The founder of Real Vision and macro investor, Raoul Pal has also remained firm in his conviction that digital assets are revolutionizing the world around us. On Saturday, Pal told his 878,000 Twitter followers that he has “touched nothing” regarding his cryptocurrency holdings.
haha… no, haven’t touched a thing and I set it up that I don’t need to.
— Raoul Pal (@RaoulGMI) January 22, 2022
haha… no, I have not touched anything and I have configured it so that it is not necessary.
Hedge funds have shown an enduring commitment to the blockchain sector over the past year, despite huge fluctuations in digital asset prices. Through the first ten months of 2021, venture capital had deployed more than $17 billion in blockchain and cryptocurrency-focused projects, according to PitchDeck.