Pantera Capital Has Secured $125 Million for Its Third Cryptocurrency Venture Fund

Francisco Memoria

Pantera Capital, a cryptocurrency hedge fund, has reportedly secured $125 million for its third cryptocurrency venture fund, which is set to invest in companies that have been in the crypto space for a while, instead of focusing on startups.

According to CoinDesk, Pantera Capital has only secured $25 million since August of last year, as it told CNBC at the time it had already raised $100 million. Paul Veradittikit, a partner of the hedge fund, justified that fundraising is now hard for the entire industry, presumably because of the bear market.

Per Veradittikit, Pantera’s initial funds came from high net-worth individuals and family offices, as well as others that could move their money quickly. Pantera has reportedly been “taking a lot of meeting” with institutional investors such as endowments and pensions funds, which has seen Veradittikit remain optimistic.

He was quoted as saying:

It’s a great time to be investing. I think we have an opportunity here to be investing in companies with good valuations and great teams and that will be around a long time.

Pantera Capital’s new fund is now set to focus on investing in “later stage rounds to support the more mature companies” in the space. This approach, Pantera’s partner stated, is set to allow the firm to take an active role in growing companies, and it’s even eyeing board seats.

Specifically, the fund has a goal of investing between $3 to $8 million for equity stakes of as much as 15% in follow-on funding, and between $1 and $3 million for equity of 10% to 20% at the seed stage.

Pantera’s first two funds have invested in 44 companies, and the third one is now set to support 30 to 50 firms. The hedge fund has notably invested in Bakkt, new Intercontinental Exchange’s venture into the cryptocurrency space.

The firm’s co-chief investment officer, Joey Krug, has last year claimed the next cryptocurrency bull run could see the cryptocurrency space see a 10x increase. Pantera Capital has notably claimed bitcoin will reach $67,500 by the end of this year. As CryptoGlobe covered, the hedge fund was down 73% for the year back in October of 2018.

Crypto-Backed Virtual World Decentraland Goes Live

  • Cryptocurrency-backed virtual world Decentraland has made its official launch.
  • Users have traded more than $1 million in virtual assets over the last ten days.

The cryptocurrency-backed virtual world Decentraland has made its official launch, giving users the ability to spend real money on digital property.

Decentralaland, which raised more than $20 million during its initial coin offering (ICO) held in 2017, has officially launched its virtual reality world living on the Ethereum blockchain.

Users have been rushing to spend money on virtual plots of land they hope will appreciate like real-world real-estate. As previously reported, crypto gamers spent more than $600,000 last week to purchase digital plots of land in the leadup to Decentraland’s official launch. 

Long-time holders of Decentraland’s native coin, MANA, are also cashing in on the craze, with the asset more than doubling since the beginning of 2020. According to data collected by NonFungible, more than $1 million in assets have been traded via Decentraland over the last ten days, making the project’s virtual world the most active entity on Ethereum’s blockchain. 

Ari Meilich, the game’s project lead, told Bloomberg in a phone interview,  

The users are in control of the digital assets, which is something that hasn’t happened before.

He continued, 

We think that over time players will gravitate toward games where they are more in control.

Decentraland is already trading more than 10 times the virtual assets as CryptoKitties, which was previously one of the most popular Ethereum network applications. 

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