Polygon, Ripple, Octava, NEO Global Capital, Appworks, Sebastien Borget of The Sandbox, GSR, LD Capital, Metavest Capital and others participated in the fundraising round.
Blockchain Founders Fund, a venture capital fund supporting the adoption of Web3 and blockchain technology, announced the completion of a $75 million fundraising round from Polygon, Ripple, Octava, NEO Global Capital, Appworks, GSR, LD Capital, Metavest Capital and others, including The Sandbox’s chief operating officer Sebastien Borget.
In line with the announcement, the fund will support high-potential pre-seed and seed projects that promote the mass adoption of Web3 and blockchain technology. Over 100 startups have already been invested in by the fund, including Altered State Machine, Splinterlands, GRID, Krayon, and Magna.
Michiko Yuda, marketing coordinator at Blockchain Founders Fund, told Cointelegraph that the venture capital fund would potentially invest in more than 200 companies within the next year.
Yuda discussed the criteria that Web3 startups need to qualify for funding from the Blockchain Founders Fund. The fund aims to back early-stage projects with talented teams that can deliver on their idea; products or services with real world relevance and a viable business plan showing understanding of the target audience and competing firms. There must also be identified pathways for monetization in order for applicants to succeed.
During the presentation, Yuda shared some of the major challenges faced by crypto venture capitalists and how the Blockchain Founders Fund is helping to mitigate them: “There is a high level of competition for deals in the space, regulatory uncertainty, as well as a limited track record of successful projects.” Our strategy is to invest in high-quality startups with strong fundamentals and solid signs of traction to address these challenges.”
Additionally, Yuda told Cointelegraph that the Blockchain Founders Fund only invests in well-rounded teams when evaluating investments.
Our company stays abreast of emerging trends in blockchain governance as they continue to evolve over time to navigate regulatory uncertainty. In addition, we help our portfolio companies succeed by leveraging our industry connections, including leading institutions and investors.”
There was a pullback in venture capital spending by investors in Q4 2022, according to a report published on Feb. 24 by Cointelegraph. But investors continue to bankroll blockchain-based technologies, applications, and startups despite the pullback.
Venture capital investments are also shifting toward “non-volatile innovations,” such as cross-chain bridges, payments and remittances, lending, decentralized autonomous organizations, asset management and digital identity management.