Thursday, January 27, 2022

FTX Launches $2 Billion VC Fund to Invest in Crypto Startups

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On January 14, FTX, a preferred Bahamian-based
 
 cryptocurrency change 
led by Sam Bankman-Fried, introduced a launch of a brand new enterprise capital enterprise unit known as FTX Ventures. According to the Wall Street Journal media shops, the change has pumped $2 billion fund into the brand new capital unit to deal with investing in crypto-industry startups. The allocation makes the FTX Ventures’ fund as one of many largest enterprise capitals in the crypto {industry}. FTX change disclosed that the $2 billion enterprise fund can be led by Amy Wu, a former General Partner at $10 billion enterprise capital agency Lightspeed.

As per FTX change, the FTX Ventures will majorly deal with
 
 blockchain 
and cryptocurrency investments. Wu talked concerning the growth and acknowledged that the fund will make strategic concentrated bets into corporations in the crypto market, from Latin America, Africa, and past. She mentioned that FTX Ventures is particularly enthusiastic about shopper and social web3 in addition to Web3 gaming purposes. She additional talked about that the enterprise agency additionally targets layer-1 and layer-2 blockchain platforms, blockchain infrastructure, cross-chain protocols, crypto-fueled and NFT-powered video video games, and pockets cost purposes.

“It’s not necessarily tied to the strategy of FTX. The objective is more to accelerate the adoption of blockchain technology. We want to be known for the value add that we bring, leveraging the resources, the expertise and the global network of FTX,” Wu elaborated.

Why Crypto Startups Are Attracting Venture Capital Money

The growth by FTX cryptocurrency change to have launched its FTX Ventures’ fund comes at a time when the crypto and blockchain house sees a variety of curiosity from enterprise capital corporations. Such pursuits translated right into a vital quantity of investments made in the house in the course of the yr 2021. Startups in the crypto and blockchain sector have turn into winners in the class of record-breaking fundraising. Venture capitalists wager huge in cryptocurrency in the earlier yr, investing additional cash than ever into rising corporations in the sector. Startups in the blockchain and crypto house have been powered by a document $33 billion in ventral capital funding final yr. That will be in contrast with the yr 2020, which noticed enterprise funding of about $3.1 billion.

In 2021, about 43% of crypto funding went into companies concerned in lending, investing, change providers, and buying and selling of cryptocurrencies. Meanwhile, 17% was channeled in direction of startups in Metaverse (a community of 3D digital worlds), Web3 (a decentralized on-line ecosystem based mostly on the blockchain), DAOs (decentralized autonomous organizations), and FTs (non-fungible tokens). Other classes that additionally attracted vital enterprise capital curiosity embrace decentralized finance, infrastructure, and custody.

Crypto startups have turn into so worthwhile that they’ve begun attracting growth-stage capital. In the earlier yr, main crypto funds akin to Hivemind, a16z, and Paradigm managed to increase billions of {dollars} to wager in crypto and blockchain startups.

On January 14, FTX, a preferred Bahamian-based
 
 cryptocurrency change 
led by Sam Bankman-Fried, introduced a launch of a brand new enterprise capital enterprise unit known as FTX Ventures. According to the Wall Street Journal media shops, the change has pumped $2 billion fund into the brand new capital unit to deal with investing in crypto-industry startups. The allocation makes the FTX Ventures’ fund as one of many largest enterprise capitals in the crypto {industry}. FTX change disclosed that the $2 billion enterprise fund can be led by Amy Wu, a former General Partner at $10 billion enterprise capital agency Lightspeed.

As per FTX change, the FTX Ventures will majorly deal with
 
 blockchain 
and cryptocurrency investments. Wu talked concerning the growth and acknowledged that the fund will make strategic concentrated bets into corporations in the crypto market, from Latin America, Africa, and past. She mentioned that FTX Ventures is particularly enthusiastic about shopper and social web3 in addition to Web3 gaming purposes. She additional talked about that the enterprise agency additionally targets layer-1 and layer-2 blockchain platforms, blockchain infrastructure, cross-chain protocols, crypto-fueled and NFT-powered video video games, and pockets cost purposes.

“It’s not necessarily tied to the strategy of FTX. The objective is more to accelerate the adoption of blockchain technology. We want to be known for the value add that we bring, leveraging the resources, the expertise and the global network of FTX,” Wu elaborated.

Why Crypto Startups Are Attracting Venture Capital Money

The growth by FTX cryptocurrency change to have launched its FTX Ventures’ fund comes at a time when the crypto and blockchain house sees a variety of curiosity from enterprise capital corporations. Such pursuits translated right into a vital quantity of investments made in the house in the course of the yr 2021. Startups in the crypto and blockchain sector have turn into winners in the class of record-breaking fundraising. Venture capitalists wager huge in cryptocurrency in the earlier yr, investing additional cash than ever into rising corporations in the sector. Startups in the blockchain and crypto house have been powered by a document $33 billion in ventral capital funding final yr. That will be in contrast with the yr 2020, which noticed enterprise funding of about $3.1 billion.

In 2021, about 43% of crypto funding went into companies concerned in lending, investing, change providers, and buying and selling of cryptocurrencies. Meanwhile, 17% was channeled in direction of startups in Metaverse (a community of 3D digital worlds), Web3 (a decentralized on-line ecosystem based mostly on the blockchain), DAOs (decentralized autonomous organizations), and FTs (non-fungible tokens). Other classes that additionally attracted vital enterprise capital curiosity embrace decentralized finance, infrastructure, and custody.

Crypto startups have turn into so worthwhile that they’ve begun attracting growth-stage capital. In the earlier yr, main crypto funds akin to Hivemind, a16z, and Paradigm managed to increase billions of {dollars} to wager in crypto and blockchain startups.



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