Quick take:
- Kryptós will likely invest in early-stage Web3 startups and cryptocurrencies.
- The new fund will charge investors a 2.5% management fee.
- Seven Seven Six currently has 56 portfolio companies.
Seven Seven Six, a venture capital firm led by Reddit co-founder Alexis Ohanian, is planning to launch a $177.6 million new fund to invest in early-stage Web3 startups and cryptocurrencies.
The firm registered as an investment advisor with the SEC in April, enabling it to launch and manage crypto finds. It expects to launch the new fund, named Kryptós, in October. According to The Information, Seven Seven Six started raising money for the fund recently and is taking advantage of the crypto downturn to invest in strong Web3 founders at a discount.
“This is the best time to buy if you’re really long on the industry,” Seven Seven Six co-founder and partner Katelin Holloway told The Information. “It’s on sale. Everything is on sale.”
Seven Seven Six, which launched two years ago, currently has 56 portfolio companies including Bored Ape Yacht Club parent, Yuga Labs; Invisible Universe; fantasy blockchain game Forgotten Rune Wizard’s Cult; and Moonbirds parent company Proof which announced on Tuesday that it has raised $50 million in a Series A round.
Kryptós will charge investors a 2.5% management fee, higher than the industry standard of 2%, and will offer a 25% profit-sharing plan.
Last December, Seven Seven Six teamed up with Polygon to launch a $200 million Web3 fund.
With the new fund, Seven Seven Six’s joins many other Web3-focused venture capital firms in taking advantage of the bear market to invest in industry players and crypto tokens. Bloomberg reported on Tuesday that Singapore’s state-owned holdings company Temasek is leading a $100 funding round for Animoca brands.
Last week, Symbolic Capital, the VC of Polygon founder Sandeep Nailwal and Cere co-founder Kenzi Wang, launched a $50 million Web3 fund to support early-stage Web3 startups from emerging markets.
The week before that, blockchain investment firm CoinFund launched a $300 fund to invest in early-stage Layer-1 blockchains, Web3 infrastructure, gaming and NFT startups while Shima Capital announced a $200 million fund focusing on focus on pre-seed and seed stage startups as well as private tokens.
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