Venture capital funding in the cryptocurrency market is showing no signs of slowing, as major investors continue to back promising startups in niche industries spanning the metaverse, nonfungible tokens (NFTs) and GameFi.
Cointelegraph’s new series, VC Roundup, provides a rundown of some of the biggest funding stories of the past few weeks. To stay informed on the latest developments from the world of blockchain business, be sure to register for our Crypto Biz newsletter, which is delivered to your inbox every Thursday.
Animoca Brands leads NFT3 raise
Web3 identity network NFT3 raised $7.5 million in seed investments to continue building its decentralized identity and credit network platforms. The funding was led by Animoca Brands with additional participation from LD Capital, CMS Holdings, Tenzor Capital, Ankr Network, DFG Group, Prometheus Labs Ventures and others.
NFT3 is utilizing nonfungible tokens for Digital Identity Systems, also known as DIDs, which are considered to be the next frontier of digital identity in the Web3 age. Animoca co-founder Yat Siu described NFTs as being the “cornerstones of identity in Web3” and an increasingly important component of the metaverse.
Hartmann Capital launches metaverse fund
Crypto-focused investment firm Hartmann Capital has raised $30 million for its metaverse fund, potentially opening the door to new investment opportunities in the emerging sector. The Hartman Metaverse Ventures I seeks to invest in various aspects of the metaverse sector, including infrastructure, content and access points. The company said it will back “early-stage token and equity deals” and pursue additional investment opportunities via its NFT portfolio.
Arca closes $50M NFT fund
Crypto asset management firm Arca has created a new hedge fund product that allows financial institutions to more seamlessly integrate nonfungible tokens into their portfolios. The NFT Arca Fund, which reached its $50 million cap in an oversubscribed raise, aims to generate yield and equity through NFT purchases. The new Arca fund will focus on digital property, digital collectibles, in-game assets and identity tokens.
Big banks spent years calling Bitcoin and crypto a scam. But now they believe crypto is a "maturing asset class" similar to the internet in the mid-1990s. CT Business Editor @forgeforth_ has the scoop. https://t.co/RHgI3qlrNb
— Cointelegraph (@Cointelegraph) February 11, 2022
NFT market aggregator Hyperspace raises $4.5M
Solana NFT marketplace aggregator Hyperspace recently closed a $4.5 million seed round with backing from Jump Capital, Galaxy Digital, Coinbase Ventures, Soma Capital, Solana Capital and others. Hyperspace will use the fresh financing on product development, building in-house capacity and increasing its marketing efforts.
Hyperspace provides an aggregation platform, allowing users to discover and shop NFTs across the entire Solana ecosystem. It also allows users to mint and trade NFTs directly on Hyperspace.
Alexis Ohanian’s 776 to be majority crypto by end of 2022
Reddit co-founder Alexis Ohanian is no stranger to the cryptocurrency market. His venture capital firm, 776 Management LLC, was behind a $100 million Web3 growth fund in November 2021 alongside Solana Ventures. Now, Ohanian’s 776 has launched two new funds, collectively worth $500 million, dedicated to investing in startups at various stages in their development. While Ohanian didn’t give specific numbers, he told The Wall Street Journal that crypto “will be the majority of the portfolio by the end of this year.”
Ohanian's Seven Seven Six venture capital firm is partnering with Polygon to back projects at the intersection of social media and Web 3.0. https://t.co/EEpSduJB91
— Cointelegraph (@Cointelegraph) December 17, 2021
Ohanian’s growing interest in crypto is based on his assessment of where the talent is going. “Talent has never led me wrong,” he said, referring to the massive influx of software developers to the cryptocurrency industry. According to venture firm Electric Capital, roughly 34,000 new developers contributed to open-source crypto projects in 2021, the highest on record.
Source: Cointelegraph
