CoinFund launches $300M early-stage Web3 venture fund

The New York- and Miami-based VC firm said several of its seed-stage crypto investments are preparing Series A funding rounds.

Blockchain venture firm CoinFund has launched a new investment fund devoted to Web3 and other crypto-focused startups, opening the door to fresh funding opportunities for entrepreneurs during the bear market. 

The newly launched CoinFund Ventures I will invest $300 million into early-stage companies at the intersection of Web3, cryptocurrency and other blockchain sub-sectors, the company announced Wednesday. The new fund was financed by a combination of institutional investors, family offices and cryptocurrency entrepreneurs. 

CoinFund Ventures I is more than three times bigger than the firm’s 2021 crypto startup fund, which was valued at $83 million. CoinFund was an investor in the nonfungible token marketplace Rarible and Solana Labs’ $314 million private token sale. The company disclosed Wednesday that several of its seed-stage portfolio companies are preparing to raise Series A funding but didn’t disclose any names.

CoinFund said its new investment vehicle reflects its belief that Web3 marks the “architectural transition” for the new internet. Although definitions vary, Web3 generally refers to the next iteration of the internet, powered by blockchain technology and tokenized assets.

Related: VC Roundup: Lightning Network payment rail, DeFi trading platform and blockchain security firm raise millions

Web3 projects have received significant backing from the venture capital community. In the second quarter of 2022, these startups represented around 42% of individual funding deals in the crypto sector, according to Cointelegraph Research. Despite this backing, Web3 ecosystems are still in their very nascent stages and many projects haven’t been built for utility, according to Raymond Liao, a managing director at Samsung Next.

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