The seed fund is concentrating on four developing verticals, which incorporate AI and cryptocurrency.
With a new $158 million fund, CoinFund is increasing its investment into the web3 industry as other venture capitalists turn away from the crypto sector in search of other promising firms.
The firm disclosed on Tuesday that institutional investors, family offices, and high net worth individuals are supporting the oversubscribed pool of cash, known as the CoinFund Seed IV Fund, which initially had a target fundraising goal of $125 million.
This fund’s third seed fund, which was $83 million, is 90.4% smaller than this one.
It will help pre-seed and seed stage web3 investments, which are still forming and raising money within the crypto ecosystem despite the present bear market.
Since its establishment in 2015, the company has made about 105 investments through six different investment vehicles.
Through venture and liquid investment tactics, it raised more than $550 million in the previous 18 months.
It introduced a $320 million venture fund in 2022 for web3 startup rounds. Alex Felix, co-founder and CIO at CoinFund, said to TechCrunch+ that “this is a subset of getting ready for the next leg of growth.”
According to PitchBook data, investment in the cryptocurrency market was little in the second quarter of 2023, falling to $2.34 billion for a sixth straight quarter.
The decline may be related to the fact that VC companies are investing less money in order to protect their capital, to regulatory challenges in the United States, to lower valuations and smaller rounds that result in smaller checks, and to some firms leaving the crypto ecosystem in the hopes of finding more lucrative investments.
It’s undeniably accurate that crossover funds and later-stage investors have drastically reduced their investments, according to Felix. “We’ve no doubt observed other peers becoming preoccupied with different activities.
It doesn’t matter if it’s clearing up after portfolio companies that have been affected by X, Y, or Z during the last year or two, or if it’s those that are concentrating on fundraising to build up the following vintages.
