The venture capital firm capital dispersion just came out of hiding to launch a $40 million fund for startups working on infrastructure for Web3 projects.
According to a statement, Dispersion Capital has already invested in 20 companies, “most of which have received complementary financing.”
Dispersion Capital is a global early stage web3 VC fund. We invest in the disruption of the blockchain technology emerging from the web3 infrastructure reinvention which we are calling the “Dispersion Economy”. Dispersion specializes in web3 infrastructure and platforms.
– Dispersion Capital (@DispersionVC) May 11, 2022
The company’s goal is to invest in startups working to “advance the cutting-edge infrastructure needed for a multi-chain, multi-currency, and multi-platform world,” with a particular focus on Web3 and decentralized platforms.
Dispersion Capital is backed by several high-profile organizations including Ripple, HashKey, Wemade, Circle Ventures, Alchemy Ventures, Cherubic Ventures, Forte, and NGC.
The apparent goal of the company is to extend the infrastructure for Web3 applications. In an interview with TechCrunch, Dispersion Capital founder Patrick Chang explained that his organization’s goal was to “bring Web3 to a level similar to cloud computing.”
Chang explained that an influx of Web3 and non-fungible token-focused companies entering the ecosystem in 2021 created a need for stronger infrastructure support. “What was frustrating for users and people coming into web3 was the onboarding, scalability and hacks,” Chang told TechCrunch, before adding: “The infrastructure was incredibly immature and people weren’t thinking about it.”
According to the announcement, Dispersion Capital’s sole goal is to fund startups focused on “specific layers of Web3, including fintech and gaming infrastructure, security, data, and platforms that challenge legacy industries.”
The timing of the official launch of Dispersion Capital is noteworthy. As Cointelegraph reported on May 12, cryptocurrency venture capitalists made $2.6 billion worth of deals in the first quarter of 2023. Overall, these investments were down from 2022, down nearly 17% in the early stages year-over-year. This was the fourth consecutive quarter to end with a decline in investments, a trend that threatens to continue as continued market volatility frames the second quarter of 2023.
Nonetheless, a PitchBook report cites “privacy, data management, and security of Web3 protocols” as emerging markets in 2023. This indicates that Dispersion Capital could be well positioned as the sector moves through regulatory uncertainty.
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