Singapore-based venture capital firm Golden Gate Ventures has recently announced it’s launching a $10 million fund focused on cryptocurrency and blockchain technology startups. The fund, LuneX Ventures, is set to invest in early-stage companies.
According to Markets Insider, the fund will be led by Golden Gate Ventures’ former head of growth, Kenrick Drijoningen, who revealed it sees blockchain as a “foundational technology, on par with or possibly exceeding the internet in disruptive potential.” He added:
Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.
The fund is reportedly the first VC-backed one in Southeast Asia focusing on cryptocurrencies and blockchain technology. It’s set to invest in companies throughout the world, while adopting a long-term view. Qualities favored, per Markets Insider, include scalable infrastructure, interoperability, and practical solutions to issues that stop institutional investors from entering the space.
According to Drijoningen, traditional investors struggle to invest in cryptocurrencies because of “legal, custodian, banking, tax and other operating obstacles to overcome.” LuneX Ventures, he touted, was built to address all of these and to provide accredited investors easy access into the market.
The fund reportedly already has lined up a number of investments. Speaking to e27, Drijoningen stated:
We have a strong pipeline of five to 10 investments ready to go and made our first commitment to Singapore-based Sparrow Exchange [a peer-to-peer crypto options trading platform] already.
Investors in the fund are set to include high net worth individuals and family offices. Before its crypto-exclusive fund LuneX Ventures, Golden Gate Ventures has reportedly invested in Ethereum-based blockchain startup Omise, which is developing a payments platform powered by OMG.
Golden Gates Ventures’ fund comes at a time in which the initial coin offering (ICO) market booms. As CryptoGlobe reported, ICO projects have raised over $8.3 billion last quarter, after the market “more than doubled in a year.”
The fund is notably among a cluster of other organizations that have been investing in cryptocurrencies and fintech startups. As covered BlackRock, the world’s largest asset manager, has revealed it’s considering getting into crypto. Earlier this year, the venture capital arm of the Rockefeller Foundation and the Soros Fund Management also showed interest in the market, that’s nevertheless enduring a bearish trend.