Quick take:
- Previous crypto companies that Uncorrelated invested in include Cosmos Chain, DeFi protocol dYdX, and DEX platform UniSwap.
- The firm currently has $700 million in assets under management invested in over 100 companies.
- The remaining 80% of the new fund will go towards traditional software investments.
Uncorrelated has announced a $315 million new fund to invest in software and crypto startups. Speaking to Bloomberg, which reported the news first, General Partner Salil Deshpande said the fund will invest 80% in traditional software companies, with the remaining 20% (~$63 million) going towards crypto startups.
The announcement comes at a time when crypto fundraising seems to be on a rebound after a torrid 2023. Funding for Web3 startups fell for the eighth consecutive quarter to $1.2 billion in Q4 last year, according to CrunchBase’s Web3 tracker. In the first quarter of 2024, the industry has already raised more than $420 million, and it is still January.
Uncorrelated’s $63 million allocation for crypto startups is not a surprise, the firm has been active in the crypto space since launching in 2020, with its notable investments in the industry highlighted by the backing of decentralised exchange platform UniSwap.
The company also invested in dYsX, a decentralised finance (DeFi) protocol developer that allows users to trade cryptocurrencies. Other notable crypto projects that Uncorrelated invested in include Cosmos Chain, Compound Finance and Helium Network.
Since its inception, the venture firm founded by the former Managing Director of Bain Capital has grown to manage $700 million worth of assets, invested in over 100 companies.
Explaining how his company chooses crypto projects to invest in, Deshpande told Bloomberg: “It’s real technology with real use cases. I think the use cases were in the past overhyped and overvalued, and it’s our job as investors to properly value them.”
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