Venture Capital Firm Launches $10 Million Cryptocurrency-Focused Fund
Popular venture capital firm based in Singapore, Golden Gate Ventures is launching a bill that will see cryptocurrencies receive a dedicated $10 million in venture capital.
Golden Gate Ventures launches $10 million crypto funds
Golden Gate Ventures has referred to the bill and the $10 million investment capital as Southeast Asia’s ‘first dedicated VC cryptocurrency fund’.
The venture capital firm refers to the investment as LuneX Ventures. According to the firm, the LuneX Ventures will cast a ‘laser-like focus’ on the cryptocurrency and blockchain space.
According to Golden Gates, LuneX Ventures will achieve this by investing in early-stage startups including cryptocurrency exchanges.
LuneX Ventures will be led by Golden Gate’s former head of growth Kenrick Drijoningen, who will also assume the role of its founding partner.
In speaking of his firm’s investment, Drijoningen said:
“We view blockchain as a foundational technology, on a par with or possibly exceeding the Internet in disruptive potential. Right now valuations have come down to more reasonable levels and the industry is MOVING from pioneers to early adopters, which is a great time to start investing.”
According to Kenrick Drijoningen, the aim of the fund is to bring the cryptocurrency industry to the next level; global adoption.
Drijoningen told channel e27s that the fund is expected to close up to $10 million before the end of 2018 and has already lined up a number of investments. Drijoningen said:
“We have a strong pipeline of five to 10 investments ready to go AND made our first commitment to Singapore-based Sparrow Exchange [a peer-to-peer crypto options trading platform] already.”
He further explained that beyond cryptocurrency exchanges, the fund will also be used for startups devising practical solutions to custody and security requirements in the crypto sector.
According to Drijkoningen, firms looking to introduce crypto assets and blockchain technology to “institutional services” will also be favored.
Also, the $10 million capital will be split equally among token sales, purchasing existing tokens and equity-based investments in crypto projects.
The crypto-industry continues to grow despite faltering market
The VC’s decision to fund cryptocurrencies agrees with the shift of Wall Street to the cryptocurrency industry as it begins to achieve massive adoption.
Regardless of the decline cryptocurrencies are faced with, projects continue to secure support already established names in the Wall Street.
This week, Chinese based private equity firm GSR Capital has announced what would eventually become the largest single investment in a blockchain platform.
The company plans to invest as much as $404.5 million in Overstock and its subsidiary blockchain project, tZero.
Unlike GSR Capital which recently announced its first investment in cryptocurrency, Golden Gate has a reputation for being focused on series A companies.
The venture capital firm has made over 40 investments to date. Most notably its backing of the Thai-based Ethereum blockchain startup Omise.
Golden Gates backed OmiseGo in its development of a decentralized payments platform powered by OMG tokens.
The launch of the fund is a strong indication that cryptocurrencies are steadily gaining massive adoption, and that remain relevant regardless of the current state of the market.