Multicoin Puts Its $430M Fund to Use as It Backs Modular Capital in a $20M Funding Round

A new crypto hedge fund sees the crypto winter as a ‘blessing in disguise’ for shrewd investors looking to invest in liquid tokens and Web3 projects like NFTs and DeFi.
Imagse source: Modular Capital/Blockworks

Quick take:

  • Multicoin has invested in Modular Capital’s $20 million fundraising. 
  • The newly launched crypto hedge fund announced the successful funding round on Monday.
  • Led by James Ho and Vincent Jow, the fund is taking advantage of the crypto winter to invest in DeFi, NFTs and other Web3 projects.

The crypto winter has caused an approximately 60% dip in cryptocurrency prices. But while the huge decline in market value has scared some investors away, some are looking to take advantage of the situation by investing before the next crypto boom.

Such is the view taken by two investment professionals who have dived in seemingly at the ‘worst possible time’. James Ho and Vincent Jow have launched a crypto hedge fund called Modular Capital to invest in web3 projects. 

And to kick things off, the fund announced on Monday the successful completion of a $20 million fundraising backed by leading web3-focused investment firms like Multicoin Capital, ParaFi Capital, Road Capital and LedgerPrime, among others.

Multicoin Capital seems to have tapped one of its earliest projects for its new fund. The venture capital firm last week announced a $430 million crypto fund to invest in creator monetisation projects including Defi and non-fungible tokens (NFTs).

Although Modular Capital seems to be focused on investing in tokens and DeFi, part of its goal is to invest in projects that target more use cases of Web3. Co-founder Ho said the firm will also monitor NFTs and how they could be integrated into various experiences to unlock more benefits for owners.

“Obviously basic profile pictures and JPEGs have been the first foray into that over the last year, but I think you’re going to see a lot more interesting things around music, content, concerts, ticketing and gaming,” Ho said in an interview with Blockworks.

Modular will seek to invest in business verticals that focus on building richer experiences for users, which although not particularly stated, implies potentially web3 gaming and the metaverse.

The company is also targeting investments in “layer-1 and layer-2 blockchains or various Web3 infrastructure tools.”

L1 and L2 blockchains are popular for enabling fast and bulk execution of transactions, well as, charging low gas fees. Those factors are also synonymous with blockchain gaming, DAOs and NFT projects.

Multicoin managing partner Kyle Samani said in a statement last week that the first new Fund III will target opportunities in areas “like creator monetization, DAO tooling, and new crypto-enabled IP models.”

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