Seven Seven Six, the venture capital firm run by Reddit co-founder Alexis Ohanian is launching a $177 million crypto fund.
New Crypto Fund For “Discount Investments”
Kryptós, the first crypto-focused fund launched by VC firm Seven Seven Six, will be raising $177.6 million to make the most of the bear market through discounted investments. The fund will launch in October and will initially share 25% of all profits with investors across-the-board, with a 2.5% management fee per investor. The payout could increase to 35% of all profits if the fund grows five times its current size.
The fund will buy the dip across cryptocurrencies like BTC and ETH during the market downturn to establish its investments at discounted rates. In its marketing material, the Kryptós team has mentioned that it believes the present bear market to be a unique opportunity to invest in strong founders at a discount.
According to founding partner Katelin Holloway,
Ohanian’s 776 Raising Funds Left And Right
Since its inception in 2020, Seven Seven Six has already managed over $750 million in total funds. It has also gone through three separate funding rounds; however, Kryptos will be its first crypto-centric funding initiative. The VC firm had previously partnered with Ethereum scaling solutions company, Polygon to launch a $200 million fund to support social media projects that dabble with the Web3. However, coming back to the Kryptos fund, the $177 million goal does not seem that ambitious in the context of the several million- and billion-dollar funds that have been raised this year.
Bear Market Didn’t Slow Down Crypto Funding
The crypto market turmoil and the overall recession have surprisingly not affected crypto funding. In fact, 2022 has set new records in raising funds for crypto projects.
In May, investment firm Andreessen Horowitz (a16z) raised a whopping $4.5 billion in the largest VC crypto fundraise ever. Additionally, asset management firm Brevan Howard raised over $1 billion to launch its flagship crypto fund, BH Digital Multi-Strategy Fund.
Crypto analytics firm Messari and Dove Metrics have revealed that the crypto funds raised in 2022 will overtake that of 2021. While in 2021, the industry received a total funding of $30.2 billion, the numbers are set to be even larger this year. In the first half of 2022 alone, VC funding for crypto amounted to a whopping $30.3 billion.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : cryptodaily
