Venture capital firm, Fundamental Labs launched its Fundamental Labs Fund V – the fifth in its series of funds that kicked off in 2016. It was constituted within one month with a medium size of $50M. Fundamental Labs’ investment philosophy is anchored around being a long-term, strategic, value investor. Short-term speculation is not its approach so remains phase agnostic.
Looking ahead into 2022, it plans to launch another new fund with a decent sized $200M AUM to encompass more of the exciting Web3.0 application and infrastructure project it sees as prime investable sectors.
With 2021 being a landmark year for the global digital asset market and Web 3.0 ecosystem, the Fundamental Labs team has seen an incredible combination of talent and capital flow into this space. While all-time highs (ATHs) were printed across crypto markets there were several trends that commanded even more attention.
Digital assets emerged as one of the hottest alternative investments in recent times. Coinbase, the largest US cryptocurrency exchange and one of Fundamental Labs’ portfolio companies, made its public market debut on the Nasdaq in April. It was a breakthrough moment for digital assets investors, adding to a sense that the asset class has become “mainstream”.
The emergence of NFTs, the Metaverse, and GameFi set off a massive wave of innovation (and investment) in the underlying decentralized technology stack and “Web 3.0” rose from being an ambiguous buzz word to become an inevitable trend that promises to substantially change to our work and daily lives.
With more investment comes more innovation, and with more innovation the entire ecosystem will only grow, exponentially, as we move headlong into the future. This change is exciting and rich with opportunities, and Fundamental Labs will be continuing its mission to help entrepreneurs accelerate their fundamental innovation and mass adoption and will be riding some key themes in 2022:
- Web3.0 and Crypto
Web 3.0 is the next phase of the evolution of the internet. It aims to be a decentralized version of the virtual world, where users can interact and collaborate intelligently without worrying about the central Web 2.0 servers. To make the web evolution more inclusive and less biased, blockchain technology will be a foundational resource to focus on.
- NFT Mania
“NFT” was ranked as the top trending Google search in 2021. NFTs, or Non-Fungible Tokens, took the world by storm in 2021. The trading volume of non-fungible tokens (NFTs) surpassed $13 billion, according to The Block Research. That figure is a massive 42,988% increase compared to 2020 NFT trading volumes.