Quick take:
- Ex-Ledger Chief of Staff Jean-Michel Pailhon is raising $25 million for a new fund focused on NFT art.
- Pailhon said his new fund will target non-crypto native investors particularly institutions that already hold physical art at their premises.
- The fund is seeking investment from private bankers, family offices, high-net-worth individuals and financial institutions.
Jean-Michel Pailhon is launching a $25 million fund to invest in NFT art. The former Chief of Staff at Ledger said the fund will focus on non-crypto native investors particularly institutions that already hold physical art in their premises. According to The Block, the fund already booked $2-3 million in commitments as of last week.
Unlike most web3 funds that seek investment from reputable VCs and web3 entrepreneurs, Pailhon is casting a wider net, opening the doors for private bankers, family offices, high-net-worth individuals and financial institutions to back his new venture.
Pailhon joined Ledger in 2021, while his NFT journey began NFT started three years ago. He has since built a portfolio of 460 NFTs according to his OpenSea address.
Commenting on his new venture, Pailhon said: “Our mission is to bring new collectors and new long-term institutional investors into the nascent digital art asset class.”
The crypto winter has affected web3 funding putting off mainstream investment companies, which are barred by their strict investment policies. Pailhan is looking to complete the first close of the $25 million at $5 million.
He is particularly optimistic about the idea of attracting backing from institutions that already hold physical art in their offices.
Citing the example of LVMH’s Louis Vuitton Foundation and the JPMorgan Chase Art Collection Pailhan said: “Companies active in traditional industrial sectors like banks or luxury brand companies have been building corporate art collections for decades, if not centuries.”
Pailhan hopes his experience in the NFT industries will convince such companies to invest in his fund.
“A way for some of those companies to start their discovery journey of digital art can be achieved through an investment in our digital art fund, as it will give them exposure to the underlying asset class,” reported The Block.
This could be a great learning experience for them as they make their first foray into the world of NFTs, preparing them to understand the market dynamics and possibly buy their first NFT art.
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