Crypto.com expands venture arm to $500 million to back early-stage web3 startups – TechCrunch

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Crypto.com, a popular cryptocurrency exchange, will be more active in supporting early-stage startups and helping the early ecosystem grow, following similar moves by rivals Binance, Coinbase and FTX. Therefore, we have expanded the venture capital fund to $ 500 million.

The expansion of Crypto.com Capital begins less than a year after the Singapore-based company announces a $ 200 million virgin fund. This fund, unlike many rivals, does not have an LP (that is, it is fully funded by the company’s balance sheet).

The Maiden Fund, with individual checks up to $ 10 million in size, to support about 20 startups, including the popular game YGG SEA, the multi-chain crypto portfolio tracker DeBank, and the cross-chain token infrastructure Efinity. Deployed and Ethereum scaling solution MatterLabs.

Crypto.com said in an interview with TechCrunch that Jon Russell, who joined the company as a general partner this month, will continue to focus on helping early-stage startups.

With this funding, Crypto.com has a broad focus on start-ups innovating gaming, decentralized finance, and cross-chain solutions. But he warned that the industry could change and expand into areas “we don’t know” as it has in recent years. That’s why the company is on the lookout for everything.

The announcement on Tuesday also shows that crypto exchanges are increasingly involved in being a rainmaker and beneficiary of the ecosystem, including the industries in which they operate.

FTX, which has helped more than 15 startups last week Announced $ 2 Billion Cryptographic Fund.. Its founder, Sam Bankman-Fried, also owns Alameda Research, a venture company that has helped nearly 100 web3 startups.

Coinbase Ventures, the investment arm of the only publicly traded cryptocurrency exchange, and Binance, the world’s largest cryptocurrency exchange in terms of trading volume, are also one of the largest investors in the web3 space.

Venture investment in crypto / web3 in 2021 by category (image credit: Galaxy Digital)

Despite the fact that most of the names mentioned above often co-invest in startups, funding in this area is the best ever. VC invested more than $ 33 billion in crypto / web 3 startups in 2021, and for all years to date, another major investor in the field, Galaxy Digital, said in a recent report. I am writing.

“The crypto / blockchain space rating was 141% higher than the rest of the venture capital space in the fourth quarter, highlighting a founder-friendly environment and fierce competition among investors for transaction allocation. “The report added.

Many venture capital firms are also raising new funding for crypto investment.Andreessen Horowitz last year Added $ 2.2 billion crypto fund,paradigm Announced $ 2.5 Billion Fund, And Hivemind Capital Partners have announced a $ 1.5 billion fund. Katie Horn, who co-led a16z’s $ 2.2 billion crypto fund, Leaving the company to launch a fund focused on her own crypto..

Russell – a former journalist from TechCrunch, The Next Web, and The Ken – said Crypto.com is helping startups help grow the ecosystem.

“If you’re in the industry, it’s in your interest to help businesses grow in the ecosystem and the ecosystem itself grows,” he said. (It’s worth pointing out that Solana, Avalanche, Polkadot, and some of their major investors are also actively supporting startups building native blockchain applications.)

Startup Crypto.com is less obliged than its rivals to post tokens on Crypto.com or offer other incentives to exchanges, he said. He added that the exchange team also has no soft spot for investment portfolio companies.

(How is your career moving? “I’ve been interested in cryptocurrencies for years, but didn’t dare to dive full time. Crypto.com is ambitious, but it still does things. That’s the right way. Today, crypto and web3 do have a lot of hype and enthusiasm, but it’s impossible to ignore the talent that’s being put into the industry, “he said.

Crypto.com is Professor Matt Blaze ( Sold the domain to crypto exchange), Has expanded aggressively over the past year as it seems to open courts to more users. Headquartered in Singapore, the company last year agreed to pay more than $ 700 million for the naming rights of the Staples Center in Los Angeles. The downtown Los Angeles complex has been rebranded as Crypto.com Arena for the next 20 years.

At the time of the announcement, the company, which claims to be the “fastest growing” cryptocurrency exchange, said the move was in a position to make cryptocurrencies mainstream. Crypto.com, which handles over $ 2.5 billion in transactions daily, worked with Hollywood star Matt Damon last year to promote its brand and cryptocurrencies.

Advertising starring Damon saw buying crypto tokens and NFTs as one of the biggest and most daring achievements in human history. Sure, it’s an exaggeration, but having the most mainstream American actors as celebrity sponsors at Crypto.com has certainly helped to mainstream the trading platform and everything it sells. Advertising has become viral and has been criticized for being persistent.

Crypto.com expands venture arm to $500 million to back early-stage web3 startups – TechCrunch Source link Crypto.com expands venture arm to $500 million to back early-stage web3 startups – TechCrunch

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