Reciprocal Ventures, the early-stage backers of Solana and The Graph, announced on Wednesday that it has closed a $70 million fund.

The venture capital firm plans to invest both on a traditional equity basis but also via tokens, doubling down on web3 as fellow investors in the space face insolvency issues, it said in a release. 

With the new fund, the firm says it is targeting investing in companies across decentralized finance (DeFi), institutional capital markets and web3 protocols and applications. 

Previously, the company has invested widely in the crypto sector. Along with Solana, the company counts Blockdaemon, The Graph and Protego Trust — the company which quietly raised $70 million and is set to reach a $2 billion valuation — as portfolio companies. Earlier this year, Tiger Global and Sapphire led a $207 million funding round into Blockdaemon, valuing the Reciprocal Ventures portfolio company at $3.25 billion. 

“We have been investing in web3 for over five years and believe the space is hitting an inflection point in terms of developer and user traction.” said Reciprocal Ventures partner Craig Burel. "All founders are unique, and we help them find success with a combination of our direct support and access to our network of more than 60 active advisors.”

The fund announcement comes as investors in the space face precarious market conditions. Earlier this week, The Block reported that crypto app Voyager Digital issued a default notice to hedge fund Three Arrows Capital for failing to repay a loan. Today, a court in the British Virgin Islands ordered the liquidation of the crypto hedge fund, according to a Sky News report.

While the downturn in the market may be a deter some, others, like Reciprocal, are continuing to funnel money into web3 technologies. Last month, a16z announced a $4.5 billion fund for crypto and blockchain startups. It said that $1.5 billion out of the fund will be dedicated to seed investments, while $3 billion will go to venture investments.