Fabric Ventures looks to close two web3 funds worth $245 million

Quick Take

  • Fabric Ventures is in the process of closing two new “open economy”-focused funds. 
  • The firm, which has previously backed the likes of Ledger, NEAR, and Axie Infinity parent company Sky Mavis, is aiming to raise a total of €225 million.

Fabric Ventures is in the final stages of completing an early-stage web3 fund and on track to close another focused on later-stage investments.

The pair will be worth more than €225 million ($245 million) combined, Richard Muirhead, managing partner at the London-based venture capital firm, told The Block.

The first of the two — a fund focusing on early-stage companies — was described by Muirhead  as "significantly oversubscribed" and has extended its hard cap to close at €125 million in order to introduce additional investors. Fabric is also in the process of raising a second fund, focused on investments in companies at Series B stage and onwards, which is set to be capped at €100 million. 

Fabric X, their ideation stage program, is already launching in multiple markets across Europe. Fabric has backed "open economy founders from concept to scale," it says. 

The new capital follows a $130 million raise in July, which included ​​around €25 million from the European Investment Fund (EIF). 

It was the first EIF-backed fund mandated to invest in digital assets and blockchain technology. At the time, it received backing from 33 founders, partners and executives from Ethereum, Wise, PayPal, Square, Google, PayU, Ledger, Raisin, Ebury, PPRO, NEAR, Felix Capital, LocalGlobe, Earlybird, Accelerator Ventures, Aztec Protocol, Raisin, Aragon, Orchid, MySQL, Verifone, OpenOcean, Claret Capital and more.

Muirhead said the firm anticipates raising again in spring 2023. 

Fabric has previously backed projects across the spectrum of digital assets including Ramp, Axie Infinity parent Sky Mavis and Ledger. 

It's the latest example of new capital flowing into the space. Earlier in April, Pantera also said it is raising a new fund, targeting a $200 million close at the start of May. In March, blockchain-focused venture capital firm gumi Cryptos Capital (gCC) also said it has raised $110 million to invest in early-stage startups.

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