Multicoin Capital Launches $430M Venture Fund III to Invest in Web3 Projects

Web3 venture capital firm Multicoin Capital has announced a $430 million fund III to invest in creator monetisation projects including Defi and non-fungible tokens (NFTs).
Image source: Multicoin Capital/YT

Quick take:

  • Multicoin Capital has announced its third venture fund with commitments of up to $430 million.
  • The company said the new fund will invest in products related to creator monetization including DeFi apps, NFTs, and social tokens.
  • Multicoin’s $100M fund II launched in 2021 focused on Web3 projects building on Solana.

Multicoin Capital has announced a new $430 million venture fund III to invest in web3 projects. The blockchain investment company said the new fund will focus on projects related to creator monetisation, including DeFi apps, NFTs, and social tokens, as well as building crypto-native consumer products.

The new venture fund follows the company’s $100 million venture fund II, which the company used to invest in web3 projects building on the Solana blockchain.

Multicoin said it is looking to invest in products that fit into the “proof of physical work” thesis, especially those involved in building physical infrastructures. 

These are types of projects that target massive consumer-facing markets, including those that “do verifiable work that builds real-world infrastructure.”

Multicoin is already an active investor in proof of physical work projects after backing Helium, a decentralized wireless network and a Solana-based decentralized digital mapping network, Hivemapper.

Commenting on the new fund, Kyle Samani, managing partner at Multicoin said: “creators see crypto as a better, more direct way to engage fans and monetize in a user-aligned way. The culmination of these forces make areas like creator monetization, DAO tooling, and new crypto-enabled IP models very attractive.”

The company last month collaborated with Bitwise and Matthew Ball to launch a new crypto index and fund, to invest in projects investing in the metaverse.

Multicoin Capital also co-led Justin Kan’s $35 million fundraising for his gaming NFT platform Fractal with Samani referring to the metaverse as “one of the most audacious ideas ever conceived.”

In May, Multicoin also led a $5.5 million seed round for India-based music NFT marketplace FanTiger. The platform offers users an opportunity to monetise their music content whilst establishing a stronger relationship with their fans.

The Web3 space continues to attract significant venture capital activity despite the crypto downturn. Multicoin’s huge fundraising comes at the back of leading Web3 VC firm Animoca Brands’ $75 million raise, which values the Sandbox majority owner at just under $6 billion, up from the pre-crypto crash valuation of $5 billion.

Recent data also shows that while the number of NFT first-time buyers remains relatively steady, that of returning buyers has been rising, more than doubling over the last 30 days, suggesting that web3 enthusiasts remain positive despite falling crypto prices.

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