The seed fund is focusing on four emerging verticals, including AI and crypto integration.
like another venture As capitalists shy away from the world of cryptocurrency in hopes of finding other promising startups, CoinFund is doubling down on its investment in the world of web3 with a new $158 million fund.
The oversubscribed capital pool, or CoinFund Seed IV Fund, initially had a fundraising goal of $125 million and is backed by institutional investors, family offices and high net worth individuals, the firm shared Tuesday. By comparison, this fund is 90.4% larger than its $83 million third seed fund.
It will support pre-seed and early-stage web3 investments, which are still popping up and raising capital in the crypto ecosystem, even in the midst of an ongoing bear market.
The firm was founded in 2015 and has about 105 investments in six investment vehicles. In the past 18 months, it has raised more than $550 million in liquid and venture investment strategies. In 2022, it launched a $320 million venture fund for early-stage web3 rounds. โThis is a subset of preparing for the next stage of growth,โ Alex Felix, CoinFund co-founder and CIO, told TechCrunch+.
Capital leaked into the cryptocurrency sector in the second quarter of 2023, falling for the fifth consecutive quarter to $2.34 billion, according to PitchBook data. The decline could be attributed to VC firms allocating less capital to preserve their funds, regulatory hurdles in the US, lower valuations and smaller rounds resulting in smaller checks, and some firms leaving the crypto ecosystem in hopes of finding other promising investments.
โ[Itโs] It is certainly true that the later stage folks have pulled out and the cross-funds have pulled out,โ Felix said. โWe have certainly seen other teammates distracted by other things. Whether it's cleaning out portfolio companies stuck in X, Y or Z in the last year or two or those focused on raising funds to establish the next few crops."
