Blockchain Founders Fund, a venture capital fund supporting the adoption of Web3 and blockchain technology, announced the closing of a $75 million fundraising round from companies such as Polygon, Ripple, Octava, NEO Global Capital, Appworks, GSR, LD Capital, Metavest Capital and others like Sebastien BorgetCOO of The Sandbox.
According to the announcement, the fund will be focus on supporting high-potential pre-seed and seed projects that drive mass adoption of Web3 and blockchain technology. The fund has already invested in more than 100 startups, including Altered State Machine, Splinterlands, GRID, Krayon and Magna.
In an interview with Cointelegraph, Michiko Yuda, marketing coordinator for the Blockchain Founders Fund, said the venture capital fund will potentially be spread across more than 200 companies over the next 12 months.
Speaking about the requirements and ways Web3 startups can seek funding from the Blockchain Founders Fund, Yuda said he would focus on early-stage Web3 companies with strong teams and a demonstrated ability to execute their vision. . Additionally, projects should offer products or services that meet real market needs and offer clear pathways for revenue generation or monetization over time. Projects must also have a clear and viable business plan that demonstrates a solid understanding of the target market and competitive landscape.
Discussing some of the key challenges in the crypto venture capital landscape and how the Blockchain Founders Fund is helping address them, Yuda shared, “There is a high level of competition for transactions in the space, regulatory uncertainty , as well as a limited track. folder of successful projects. In order to meet these challenges, we are focused on making investments in high-quality startups that have strong fundamentals and demonstrate strong indications of traction.”
Yuda also told Cointelegraph that the Blockchain Founders Fund takes a team-centric approach when evaluating investments to ensure that only well-rounded teams are chosen for funding. He added:
“We take the necessary precautions to navigate regulatory uncertainty by staying abreast of emerging trends in blockchain governance as they evolve over time. Finally, we leverage our relationships with the industry, including leading institutions and investors in the field to help our portfolio companies succeed.”
On February 24, Cointelegraph covered a report describing a decline in venture capital spending by investors in the fourth quarter of 2022. But despite the setback, investors are still looking to fund blockchain-based technologies, apps and startups.
The report also suggests that venture capital investments are shifting towards “non-volatile innovations,” including cross-chain bridges, payments and remittances, lending, decentralized autonomous organizations, asset management and digital identity management.