Key takeaways:
- Hedge fund with a crypto emphasis Multicoin Capital is aiming to boost $250 million for a third crypto-focused venture fund.
According to fundraising documents seen by The Information, Multicoin Capital, which manages a hedge fund focused on crypto tokens, is aiming to raise $250 million for its third venture fund to back crypto businesses. According to the report, the Austin-based firm, which announced a $100 million second fund in May, intends to conclude fundraising by the end of the year.
The proposal comes less than six months after Multicoin Capital announced the launch of its second crypto venture fund, which garnered $100 million. When Multicoin’s pitch landed like no other, @TusharJain_ (co-founder and managing partner) flashed a big-baller crypto startup with his “Shut up and take my money!” banner.
It’s the latest in a string of huge funds established this year or in the works to focus on bitcoin and blockchain initiatives by prominent venture capital companies. Andreessen Horowitz ( @a16z )raised $2.2 billion for its third cryptocurrency fund in June. In addition, Coinbase co-founder Fred Ehrsam’s ( @FEhrsam ) cryptocurrency venture capital firm, Paradigm ( @paradigm), aims to close a $1.5 billion fund for startup investments.
Multicoin Capital will be seeking possibilities in decentralised finance (DeFi) interest rate markets in the next few years and investing in crypto businesses that others may overlook. Blockchain has been labelled “the best social good in the world” by Tushar Jain. The company recently led a fundraising round for Strips Finance, a DeFi venture that aims to create a decentralised exchange for trading interest rates.
Binance, the top cryptocurrency exchange, made an investment in Multicoin Capital. “This is the first investment we have made of this nature. As a result, we will continue working closely with Multicoin Capital to explore new opportunities for blockchain, including development and market expansion, “In a blog post, Binance stated.
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