The prominent cryptocurrency investor Multicoin Capital has launched a new venture fund valued at $430 million, further demonstrating the growing interest of venture capital in the blockchain economy amid the bear market.
The Venture Fund III de Multicoin will invest between $500,000 and $25 million in early-stage companies in various sectors focused on cryptocurrencies and blockchain technology, the company announced Tuesday. It is also willing to invest values of up to USD 100 million or more for later stage projects with an established brand and market presence.
Venture Fund III will place greater emphasis on cryptocurrency projects that have demonstrated “proof of physical work”, or protocols that have created economic incentives for contribution without permission.
“While the vast majority of crypto innovation has focused on the coordination of digital communities and economies, tokens also create opportunities for innovation in capital formation and human coordination that extend beyond the digital world and into the physical”, Multicoin wrote.
The company also highlighted data decentralized autonomous organizations, also known as data DAOs, for offering strong incentives for user participation. As Cointelegraph reported, Multicoin Capital was a key investor in the Delphia data DAO project, which closed a $60 million Series A funding round in June.
0/ I’m excited to announce that Multicoin has led a $60M round in @delphia with participation from FTX Ventures, Ribbit Capital, Cumberland, Road Capital, and others.
Delphia is the first instantiation of a new type of organization uniquely enabled by Web3: a DataDAO.
— Tushar Jain (@TusharJain_) June 8, 2022
Creator monetization, a category that includes social tokens, non-fungible tokens, and decentralized finance, was also cited as a major investment theme going forward.
As investors brace for further short-term pain in crypto markets, venture firms continue to add to their portfolios. In the first quarter alone, $14.6 billion in venture funding flowed into cryptocurrency and blockchain startups, according to Cointelegraph Research. Although funding is expected to have tapered off in the second quarter, 2022 is shaping up to be a record year for venture funding.
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