Volt Capital Doubles Down on Web3 Investments with $50M Crypto Fund

The VC firm will continue to invest in early-stage projects in infrastructure, DeFi, NFTs and DAOs.
Image source: Volt Capital

Quick take:

  • This is Volt Capital’s second fund.
  • Backers for the new fund include Andreessen Horowitz (a16z) general partners Marc Andreessen and Chris Dixon.
  • The VC firm will focus on investing in pre-seed, seed and Series A rounds.

Crypto venture capital firm, Volt Capital, has raised $50 million for its second crypto fund. After Andreessen Horowitz (a16z) announced its $4.5 billion crypto fund this morning, its general partners Marc Andreessen and Chris Dixon are backing Volt Capital’s new fund.

Other backers include angel investor Elad Gil, Union Square Ventures managing partner Albert Wenger, global investment firm Tiger Global and European hedge fund manager Brevan Howard.

Volt Capital a $10 million investment fund last April — its first one. So far, the firm has placed its bets on crypto analytics company Nansen, login platform Magic, and treasury management startup Coinshift.

The new fund will continue Volt’s investments in infrastructure, DeFi, NFTs and DAOs. Volt Capital’s general partner, Soona Amhaz, said that the larger second fund gives the firm more room to pursue investments. The VC firm will still put its focus on investing in pre-seed, seed and Series A rounds. 

“What we’re investing in thematically are founders who are reimagining systems and the rails that we use to do everyday activities,” Amhaz told Coindesk. She cited payments, online authentication and video games as examples of industries that crypto can disrupt. 

Amhaz also said that her team’s strengths in combining “technical expertise, engineering and community building” are great assets to Web3 startups.  

Recently, Sequoia Capital published a 52-slide presentation warning founders in its portfolio about market shifts while Y Combinator published a letter, titled Economic Downturn, saying: “If your plan is to raise money in the next 6-12 months, you might be raising at the peak of the downturn. Remember that your chances of success are extremely low even if your company is doing well. We recommend you change your plan.”

Despite the crypto market downturn of late, Amhaz told Coindesk that this is the time “to be doubling down” on investments. 

Last week, a16z launched a $600 million gaming fund – its third one – to invest in blockchain games and related projects. On a related note, several Web3 and blockchain gaming startups have been receiving funding from various VC firms over the past few weeks. These include N3TWORK Studios, MetaKing Studios, Saga, Azra, FreshCut, Metatheory and many more.

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