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

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

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

Maiden Fund, which grows up to $10 million in single checks, has so far assisted nearly 20 startups, including YGG SEA, multi-chain crypto wallet tracker DeBank, multi-chain token infrastructure Efinity, and Ethereum scaling solution MatterLabs. It has been expanded to.

Crypto.com said in an interview with TechCrunch that John 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 is focusing heavily on startups creating games, decentralized finance, and cross-chain solutions. But he cautioned that the industry could change and expand into areas “we don’t know about” as it has in recent years. That’s why the company looks for everything.

The announcement on Tuesday also shows that cryptocurrency exchanges are increasingly becoming a rainmaker and benefactor of the ecosystem, including the industries they operate in.

FTX, which has helped more than 15 startups, announced a $2 billion crypto fund last week. Its founder, Sam Bankman-Fried, also owns Alameda Research, an investment firm 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 by trading volume, are also one of the biggest investors in the web3 space.

Crypto/web3 investing in 2021 by category (Image credit: Galaxy Digital)

Despite the fact that most of the above-mentioned names often invest in start-ups, the funding in this area is by far the best. Venture capital invested more than $33 billion in crypto/web 3 startups in 2021, and for all the years now, another major investor in the space, Galaxy Digital, said in a recent report. I am writing.

“The crypto/blockchain space rated 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 the allocation of transactions,” the report added.

Many venture capital firms are also raising fresh funds to invest in cryptocurrencies. Just last year, Andreessen Horowitz added a $2.2 billion crypto fund, Paradigm announced a $2.5 billion fund, and Hivemind Capital Partners announced a $1.5 billion fund. Katie Horn, who co-led the $2.2 billion a16z crypto fund, has left the company to launch a fund focused on her cryptocurrency.

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

“If you are in the industry, it is in your best interest to help companies grow in the ecosystem and the ecosystem itself grows,” he said. (It should be noted that Solana, Avalanche, Polkadot and some of their major investors actively support startups that build native blockchain applications.)

He said Startup Crypto.com is less obligated than its competitors to post tokens on Crypto.com or offer other incentives to exchanges. He added that the stock exchange team does not have any weakness for portfolio companies.

(How’s your career going?” I’ve been interested in cryptocurrency for years, but never dared to dive full time. Crypto.com is ambitious, but still does things. This is the right way. Today, Crypto and Web 3 I have a lot of hype and enthusiasm, but It is impossible to ignore the talent that is being put into the industry,” he said.

Originated as a blog by Professor Matt Blaze (who sold his domain to a cryptocurrency exchange), Crypto.com has grown exponentially over the past year with the goal of opening a courtroom to more users. The Singapore-based company agreed last year to pay more than $700 million for the naming rights to the Staples Center in Los Angeles. The downtown Los Angeles complex was renamed the Crypto.com Arena over the next twenty years.

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

The announcement, starring Damon, saw the purchase of crypto tokens and NFTs as one of the biggest and most daring accomplishments in human history. Sure, it’s an exaggeration, but having the most mainstream American representatives as celebrity sponsors at Crypto.com has certainly helped popularize the trading platform and all that it sells. The ad went viral and was criticized for being persistent.

Leave a Comment