Vessel Capital Raises $55M to Invest in Web3 Infrastructure
• Vessel Capital has announced a $55 million fund to invest in Web3 infrastructure and applications.
• The venture firm promises a collaborative approach with startup founders, aiming to help them launch and grow their projects.
• This comes amid the downturn in crypto venture capital investment, as June saw a 29.73% decline in investment deals.
Vessel Capital Launches $55 Million Crypto Fund
Venture capital firm Vessel Capital has announced the launch of its $55 million crypto fund to invest in Web3 infrastructure and applications. The venture firm promises a collaborative approach with startup founders, aiming to help them launch and grow their projects.
Purpose of the Fund
The team’s experience as founders of startups puts Vessel in a better position to understand entrepreneurs’ needs, according to Mirza Uddin, one of the co-founders. Uddin noted that “what’s actually missing is actual guidance and advice,“ instead of just providing money for investments. The fund’s resources will be deployed over a five-year period.
VC Investment Downturn
This announcement comes amid a downturn in crypto venture capital (VC) investment; data from the Cointelegraph Research Venture Capital Database showed that June saw a 29.73% decline in investment deals, with just $779.32 million raised from 62 transactions. Additionally, VC giant Sequoia Capital recently downsized its cryptocurrency fund from $585 million to $200 million due to liquidity crunch and shift towards smaller crypto firms.
Web3 Infrastructure Attracts Investors
Despite this downturn, Web3 infrastructure remains an attractive target for investors; earlier this week Binance’s venture capital arm declared its intention to invest up to $100 million into DeFi startups over two years time frame through Binance Labs Incubation Program (BLIP). Thus far BLIP has invested in 12 projects across DeFi space such as Celer Network and Keep Network, among others.
In conclusion, while traditional VC investments have seen a decrease due to liquidity issues during pandemic times, web3 infrastructure remains an attractive target for investors looking for long term returns on their investments . As such Vessel Capital’s new fund may provide valuable support for blockchain startups seeking guidance throughout their early stages .