Quick take:
- The fund will support its portfolio companies as they move from seed to Series A.
- It will also be adding new investments to its portfolio.
- The fund is headed by veteran venture capitalist, David Pakman.
Crypto and blockchain investment firm, CoinFund, has launched a $300 million Web3 fund backed by institutional investors, family offices and crypto founders.
The fund’s limited partners include new backers such as the Teacher Retirement System of Texas, Adams Street Partners, StepStone Group, Accolade Partners, and Theta Capital Management.
CoinFund Ventures I will invest in early-stage Layer-1 blockchains, Web3 infrastructure, gaming and NFT startups, including portfolio companies that are moving from the seed stage to Series A. It will also be adding new investments to its portfolio.
Founded in 2015, CoinFund previously invested in venture and liquid opportunities within the blockchain sector with a focus on digital assets, decentralisation technologies and key enabling infrastructure. The VC firm debuted an $83 million crypto startup fund in July last year.
Its portfolio companies include Solana, Dapper Labs, blockchain infrastructure platform Blockdaemon and data indexing protocol The Graph. The VC firm led a $3.5 million funding round for Web3 startup, DataWisp, which was completed last week.
CoinFund brought on veteran venture capitalist, David Pakman, as managing partner last September. Pakman joined CoinFund after 13 years at Venrock, a venture firm focused on investing in emerging technologies. He led the Series A round and sits on the board of Dapper Labs, and led the Series A round in Rarible. He also personally invested in Coinbase prior to their IPO.
“In my 30 years in tech, I have never seen a bigger opportunity than crypto and web3,” said Pakman. “We look forward to working with ambitious and driven entrepreneurs to build a permissionless, decentralized and community-owned internet, rewire the global financial system, and unlock enormous value for intellectual property.”
CoinFund Ventures I will be allocating $$6 million to $10 million to each company. Pakman told Coindesk that the majority of the fund will go towards new investments while a small number of portfolio companies may receive follow-on investments.
Venture capital firms are still pouring billions of dollars into Web3 amid a crypto bear market, signalling VC confidence in the space. CoinFund joins others including a16z, which announced a $4.5 billion Web3 fund in May, and Multicoin Capital, which launched a $430 million fund in July to invest in Web3 projects.
Speaking to Coindesk, Pakman said that CoinFund has gone through three downturns and that the new fund has a six to eight-year lifecycle.
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