Web3 investment firm CoinFund raised a $300 million fund amid a period of turbulence in crypto markets.
The new fund is backed by institutional investors, family offices and crypto founders, according to a statement released Wednesday. Some of those limited partners include the Teacher Retirement System of Texas, Adams Street Partners, StepStone Group, Accolade Partners, and Theta Capital Management, which are all new backers.
"In my 30 years in tech, I have never seen a bigger opportunity than crypto and web3," said managing partner David Pakman, who will lead the fund. "We look forward to working with ambitious and driven entrepreneurs to build a permissionless, decentralized and community-owned internet, rewire the global financial system, and unlock enormous value for intellectual property.”
Pakman joined CoinFund in October of last year after thirteen years with venture capital firm Venrock, and is currently on the board of Dapper Labs and Rarible. CoinFund also recently poached Einar Braathen from venture capital firm Accel.
The tough market for fundraising faced by crypto startups — which declined 22% in the second quarter — has done nothing to deter the sector's biggest backers from raising more capital. In May, a16z announced a $4.5 billion fund for crypto and blockchain startups.
Much like a16z, CoinFund is a registered investment advisor, meaning that it does not have to limit its stakes in cryptocurrencies and tokens, unlike traditional venture capital models.
Previously, CoinFund has backed the Layer 1 blockchain Solana, web3 indexing protocol The Graph, and blockchain infrastructure company Blockdaemon, among other startups.
For its latest fund, some of the cash will go towards shoring up portfolio companies that have already taken seed capital by backing them at the Series A stage. It will also target new investments.
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