Multicoin Capital, a prominent crypto investor, has launched a new $430 million investment fund, demonstrating the growing interest of venture capital in the blockchain economy amid a bear market.
Multicoin’s Venture Fund III has announced that it will invest between $500,000 and $25 million in early stage companies across various industries focused on crypto and blockchain, the company announced Tuesday. It is also willing to invest values of $100 million or more for later stage projects with a well-established brand and market presence.
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Venture Fund III will place greater emphasis on crypto projects that have shown “proof of physical work,” or protocols that create economic incentives to contribute without permission.
“While the vast majority of crypto innovations focus on orchestrating digital societies and economies, tokens also create opportunities for innovation in capital formation and human coordination that extend beyond the digital and into the physical world,” wrote Multicoin.
The company also highlighted Decentralized Autonomous Organizations, also known as data DAOs, as offering strong incentives for user engagement. As Cointelegraph reported, Multicoin Capital was a major investor in the DAO Data Project, which closed a $60 million Series A funding round in June.
Originator monetization, a category that includes social tokens, non-fungible tokens, and decentralized finance, has also been cited as a key investment theme going forward.
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As investors prepare for more short-term pain in the cryptocurrency markets, venture capital firms continue to add to their portfolios. In the first quarter alone, $14.6 billion in project funding flowed into crypto and blockchain startups, according to Cointelegraph research. Although funding is expected to be lower in the second quarter, 2022 is shaping up to be a record year for project funding.