1confirmation, the crypto investment firm backed by Mark Cuban, is looking to launch a second fund, according to a report by The Wall Street Journal.
The report, which cites a person with knowledge of the situation, said 1confirmation could raise $60 million for the new fund, which would invest in early-stage cryptocurrency projects.
The firm would invest in the project through traditional equity as well as by buying tokens, the report added. The firm's first fund, which raised $26 million in December 2017, was backed by Cuban, the billionaire investor of Shark Tank fame, as well as Thiel Capital, Runa Capital, and Real Ventures.
1confirmation joins rival investment firms raising money in recent months. Pantera, another investor in the crypto market, is looking to raise $175 million for a new fund dubbed Pantera Venture Fund III. It told investors it plans the fund to close in Q1 of 2019.
As for 1confirmation, the firm is run by Nicholas Tomaino, a former employee at Coinbase and Runa Capital. As The Journal noted, 1confirmation had one notable casualty in its portfolio in 2018 in Basis, the stable coin that shut down, as The Block first reported.
Crypto funds have gotten more creative to squeeze more alpha out of the bear market and keep the lights on.
Ari Paul, co-founder of crypto fund BlockTower Capital, shared that his firm has been looking for ways to make it through the downturn. “Budgeting is a new thing in this market,” Paul said in an interview with The Block at the Consensus Invest crypto conference. “We are allocating capital prudently and are thinking about return on investment. For instance, if we are going to do a trip to Asia, then we are going to make sure that trip will be four times as valuable as a trip to California.”
“It is hard to grow a strong business in a bull market because you aren’t forced to make tough decisions,” Paul added. “Tough decisions lead to better allocations.”
Again, firms are raising more capital to cover their expenses. “You have to be able to squeeze as much from that management fee as possible,” said another hedge fund CEO, who declined to go on the record. “Folks are making new pitch decks to try to get more investors.” Paul declined to say whether or not the firm is raising more money, but he did say he expects firms to start raising more capital.
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