Reddit co-founder's VC firm seeking $177.6 million to invest in crypto tokens: The Information

Seven Seven Six, the venture capital firm led by Reddit co-founder Alexis Ohanian, plans to raise a new $177.6 million crypto fund to invest in tokens, The Information reported Monday, citing fundraising materials.

The fund, dubbed Kryptós, will target tokens that are available at a discount thanks to the crypto market downturn. "This is the best time to buy if you're really long on the industry," Seven Seven Six founding partner Katelin Holloway told The Information. "It's on sale. Everything is on sale."

Seven Seven Six has registered as an investment adviser with the US Securities and Exchange Commission to invest in tokens. It received the registration in April. 

Kryptós will charge investors a 2.5% management fee, according to the fundraising materials. It will also receive carried interest, or a share of the fund's profits, of 25%, with the possibility of 35% if the fund returns five times or more capital, per the materials.

This is Seven Seven Six's first crypto-focused fund. The firm has previously raised two funds worth $500 million to invest across industries, including crypto. It manages more than $900 million in assets.

A growing number of high profile venture capital firms are raising funds specifically to invest in tokens. Earlier this year, Sequoia Capital raised $500 to $600 million to primarily invest in tokens and participate in the governance of projects. Bessemer Venture Partners also recently launched a $250 million crypto fund and created a decentralized autonomous organization or DAO to connect members of the crypto community for idea sharing, business development and tokenomics.