Venture capital agency 1confirmation is asserting a brand new, $45 million fund for investing in cryptocurrency startups.
Led by early Coinbase worker Nick Tomaino, the agency’s first fund, centered on seed rounds, amounted to $26 million.
“We wanted to start off relatively small, prove out the model and raise more capital if the model was working,” Tomaino instructed CoinDesk in an e-mail. “The model is working well and we had strong support from our existing [limited partner] base to launch a larger second fund.”
He says he’s broadly optimistic concerning the crypto trade. In a blog post shared with CoinDesk upfront, Tomaino wrote:
“Today, the current total market value of crypto assets is ~$272B and investment/speculation is the only mainstream use case. We think in the next five years, that total market value will surpass $1T as the investment/speculation use case continues to grow and other mainstream use cases emerge.”
1confirmation has invested in a big selection of latest firms within the trade, together with BloXroute, Tendermint, OpenSea and Commonwealth. The agency invests in each startup fairness and cryptocurrency tokens.
While Tomaino declined to element individuals within the new fund, he famous that it’s “largely backed by our existing Fund I LPs.” When 1confirmation was first announced, restricted companions included: Peter Thiel, Marc Andreessen, Balaji Srinivasan, Brendan Eich, Runa Capital and Real Ventures, amongst others.
This bigger fund will permit for the corporate to write down bigger checks whereas persevering with to capitalize on being near pioneers within the area, Tomaino instructed CoinDesk.
He wrote in an e-mail:
“For Fund I, our focus was providing early stage capital for founders building infrastructure and middleware for the decentralized web. For Fund II, we’re continuing that focus with larger checks as a result of the larger fund (Fund II checks are generally between $1M and $2M, where Fund I checks were between $250K and $1M).”
In his weblog put up, Tomaino emphasizes the significance of not chasing the pattern a lot as investing in “focused, disciplined, mission-driven founders.” Further, he predicts that bitcoin will proceed to be the market chief and that ethereum will observe shut behind, significantly because the platform for decentralized finance.
Tomaino writes:
“While the story for ETH as a store of value is not as strong as the story for BTC as a store of value and a lot of Ethereum infrastructure challenges remain unsolved, we think that Ethereum as a platform for innovation is here to stay and ETH’s future as Internet money for open, inclusive financial products (aka DeFi) is bright.”
Image: Nick Tomaino speaks at Token Summit 2019, through Brady Dale for CoinDesk
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