CoinFund Closes $158M Fourth Fund to Invest in Web3 Startups

The fund is higher than the initial target of $125 million.
Image source: CoinFund

Quick take:

  • CoinFund has raised $158 million for its fourth fund.
  • The digital assets investment firm said it will use the funds to back web3 startups across pre-seed and seed stages.
  • The fundraising brings CounFund’s total funds to $550 million raised over the last 18 months.

CoinFund’s digital assets investment arm has raised $158 million for its fourth fund, Bloomberg reported on Tuesday. The company has now raised a total of $550 million across multiple rounds over the past 18 months. Last August, the company launched a $300 million web3 fund that invests in early-stage Layer-1 blockchains, gaming and NFT startups.

In this new fundraising, CoinFund was targeting a fund of $125 million, but the fund was significantly oversubscribed. The crypto investment company said it will use the new fund to back web3 startups across pre-seed and seed stages.

This fundraising comes during a period when web3 funding has been on a decline. According to CrunchBase, web3 startup fundraising has fallen over the past five consecutive quarters, partly due to the prolonged crypto winter. However, CoinFund’s oversubscribed fourth fund puts the bearish sentiment to the test, as it seeks to double down on its web3 initiatives.

CoinFund has already invested in some of the top web3 projects including Dapper Labs, the creator of the NBA Top Shot NFT collection, and blockchain infrastructure provider Blockdaemon.

Last September, CoinFund also participated in crypto auditing firm Sherlock’s $4 million seed round, just weeks after leading web3 gaming platform Datawisp’s $3.6 million seed.

Last month, CoinFund and Binance co-led smart contract infrastructure platform Neutron’s $10 million fundraising.

The company’s new fund will focus on projects building around the intersection of crypto and AI, with Brukhman seemingly downplaying other some of the industry verticals. “Some of the more consumer stuff is a little bit in a lull, like if you look at the NFT space,” he said.

Despite the current uncertainty around tokens, CoinFund maintains that it will continue to invest in the segment, following Ripple’s $XRP big win against the SEC in a court ruling.

CoinFund Chief Investment Officer Alex Felix said approximately 90% of the firm’s investments are in the form of tokens, adding that the industry can converge with traditional finance in a regulated environment. “We are not trying to build a parallel universe,” added Felix.


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