Key takeaways:
- FTX Ventures, a new venture arm of FTX, has been established.
- The new fund will be funded with $2 billion by the exchange operator.
- Amy Wu, a former Lightspeed partner, has been hired to oversee the new fund.
FTX, founded by Sam Bankman-Fried, has formed a new venture capital business, injecting billions of dollars into the already bloated private crypto market.
FTX Ventures seeks to “promote global blockchain and web3 adoption, with a broad investment mandate across social, gaming, fintech, software, and healthcare,” according to a press statement from FTX, which has long made investments with its sister firm Alameda.
The venture fund will be funded with $2 billion from FTX. Amy Wu, a former partner at Lightspeed Venture Partners, has been tapped to oversee the new business unit and fund.
Wu noted in an interview with The Block that the fund will make targeted, concentrated bets on crypto startups.
“It’s not necessarily related to FTX’s approach,” she explained. “The main goal is to hasten the deployment of blockchain technology.”
“We want to be known for the value we contribute by using FTX’s resources, knowledge, and worldwide network,” she continued.
It’s not uncommon for crypto firms to make venture capital-style bets. Coinbase launched its own venture arm in 2018 and has since invested in hundreds of early-stage cryptocurrency firms with funds from its own bank account. Alchemy, a provider of NFT infrastructure, recently announced the launch of its investment arm at the end of last year.
In 2021, there were just over 1,700 venture capital agreements centred on the crypto industry, totalling $25.1 billion in funding for various firms, projects, and protocols. Last year, several venture capital firms, including Paradigm and a16z, unveiled new multibillion-dollar venture funds.
