Enterprise capital agency Lightspeed Faction has created a $285 million fund for crypto startups, in accordance with a Nov. 9 announcement. The fund will give attention to “early stage blockchain initiatives” and also will present capital as these initiatives scale, the announcement said.
At Faction, no entrepreneur will ever need to reply: “why crypto?” We’re absolutely red-pilled.
We’re popping out of stealth & saying the launch of Lightspeed Faction Fund I, a $285M early-stage enterprise fund devoted completely to crypto https://t.co/oUiAh6t5Sp
— Faction (@FactionVC) November 9, 2023
Lightspeed Faction stated it may well present founders entry to “a staff of skilled blockchain traders and operators,” together with members of the Amber Group, Blockchain.com, and Coinbase groups. The agency is a three way partnership between the extra conventional tech-oriented fund Lightspeed Enterprise Companions and the crypto-only fund, Faction. It makes an attempt to mix the experience of each organizations with the intention to maximize success.
Lightspeed Faction co-founder Banafsheh Fathieh claimed that the $285 million fund is required for the various promising blockchain initiatives which can be sprouting up every day, stating:
“[C]rypto is a generation-defining expertise, and we’re absolutely dedicated to investing behind one of the best entrepreneurs trying to propel blockchain expertise ahead. The blockchain ecosystem is stuffed with promising initiatives trying to disrupt all the things from monetary programs to telecommunication.”
Associated: Crypto VC agency Spartan Capital invests in Pendle to drive DeFi development
Within the announcement, Lightspeed Faction claimed that it funded a number of blockchain startups in the course of the bear market that turned out to be successes, together with Crossmint, Lens, Narya.ai, Skip.cash, Matter Labs, and others. It usually will get concerned throughout seed and Collection A rounds.
Crypto enterprise capital funding fell to a three-year low within the third quarter of 2023, with many funds seemingly being scared away by low crypto costs and a scarcity of media consideration in comparison with the bull market of 2021. Nonetheless, some initiatives have nonetheless managed to realize multi-million greenback raises even with these decrease ranges of funding.
