The initial fund focuses on four emerging verticals, including integrating AI and crypto
Jacquelyn Melinek 11 hours
As other venture capitalists drifted away from the crypto world in hopes of finding another promising startup, CoinFund doubled down on its investment into the web3 world with a new $158 million fund.
The oversubscribed capital pool, or CoinFund Seed IV Fund, initially had a fundraising target of $125 million and was backed by institutional investors, family offices and high-income individuals, the company shared on Tuesday. By comparison, this fund is 90.4% larger than the third initial fund of $83 million.
This will support pre-seed and seed-stage web3 investments, which are still emerging and raising capital within the crypto ecosystem, even amidst the ongoing bear market.
The company was founded in 2015 and has approximately 105 investments in six investment vehicles. In the last 18 months, he raised more than $550 million through liquid and venture investment strategies. In 2022, it launched a $320 million venture fund for early-stage web3 rounds. “This is part of the preparation for the next stage of growth,” Alex Felix, co-founder and CIO at CoinFund, told Zero2Billions+.
Capital poured into the crypto sector in the second quarter of 2023, falling for the fifth straight quarter to $2.34 billion, according to PitchBook data. The decline can be attributed to VC firms allocating less capital to maintain their funds, regulatory hurdles in the US, lower valuations and smaller rounds resulting in smaller checks, and some companies leaving the crypto ecosystem in hopes of finding other promising investments.
“[It’s] it is true that the next stage guys have pulled back and the cross fund has pulled back,” said Felix. “We of course saw other team-mates getting distracted with other things. Whether it’s a purge of portfolio companies that got stuck in X, Y, or Z in the last year or two or those focused on fundraising to prepare their next vintage.”