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Lightspeed Venture Forms a Blockchain Focus Group, Multicoin Capital Raises $430 Million

Multicoin Capital’s newest fund is backed by a limited number of partners and traditional VC funds such as Helium, Hivemapper, Delphia, Metaplex and FanTiger.

The ongoing crypto winter hasn’t been pleasant for investors so far, but for true believers in new technology, it seems the time has come to double down on their efforts. on high potential projects. Fintech-focused US VC firm Lightspeed Venture Partners has announced the launch of a new blockchain-focused group – Lightspeed Fraction – to invest in early-stage blockchain projects.

A new group for crypto investments

The news comes with Lightspeed Venture Partners revealing three new US funds that have raised a total of $6.6 billion and a $500 million fund focused on early-stage Indian startups. Degree. Currently, the VC company has assets worth $18 billion under its management.

The decision to bet big on blockchain companies corresponds to the investment thesis that technology “is changing how network participants are incentivized, how startups in this ecosystem are funds, and how community communities can unite their collective power to create change,” the company said.

VC started investing in cryptocurrencies in 2013, relating digital assets as a key technology offering unprecedented opportunities to the “underbanked or unbanked” population across the globe. world. Lightspeed partner Ravi Mhatre says:

“We believe the industry is still early in its transition from web2 to web3, and the partnership between Lightspeed and Faction is testament to our shared belief in the ways crypto can help grow. a site that better serves the underserved around the world. “

Fundraising in the midst of a bear market

On the same day, crypto-focused VC Multicoin Capital also said it had raised $430 million for a third fund for blockchain startups. The amount grew 4.3 times from the $100 million it raised for the second fund.

The company started raising capital in the fourth quarter of last year and closed in January of this year, according to media reports. Furthermore, early-stage companies are expected to receive $500,000 to $25 million, and later-stage projects will receive $100 million or more.

It is worth mentioning that the co-founders of Multicoin Capital, Kyle Samani and Tushar Jain, are the largest limited partners of the fund. Samani noted that the current bear market has not changed the company’s aggressive investment strategy in Web3 and blockchain companies.

Regarding the troubled company 3AC having a stake in one of Multicoin Capital’s funds, leaving people wondering if such exposure could cause financial stress on the venture, Samani suggested that it ” absolutely no effect” on MC.