Over the last six months, the crypto community has witnessed intense growth and seen multiple adoptions from different firms. Global giants such as Facebook, Twitter, and several sports teams have all announced different partnerships and sponsorship deals with different crypto firms.
The crypto space has become more competitive than it ever was, and various firms are constantly on the run to develop and upgrade their platform. Fundraising is one of the ways these firms get the much-needed resources to boost their community and fund their vision.
Multicoin to Raise more Funds
According to a recent report, Multicoin Capital, a cryptocurrency and blockchain investment business, is looking to raise $250 million for its third crypto-focused venture fund. This new fundraising plan comes six months after it announced the launch of its second crypto startup fund, which raised a massive $100 million. Reports revealed that the Texas-based firm plans to finish the financing by the end of the year, showing its ambition in the crypto space.
Multicoin’s co-founder Tushar Jain had earlier this month revealed that the company is interested in investigating prospects in decentralized finance (DeFi) interest rate markets. The company recently led a financing round for Strips Finance, a DeFi initiative that aims to create a decentralized exchange for trading interest rates.
Various firms have been backing Multicoin and providing it with the funds needed to achieve its goals. In March this year, Binance invested in Multicoin, making it a hedge fund partner. Ribbit Capital, Union Square Ventures, venture capitalist Marc Andreessen, and former PayPal Chief Operating Officer David Sacks have all invested in Multicoin, and the firm does not seem to be slowing down on its plans anytime soon.
Previous $1Million Funding
As part of its growth plans, the crypto investing firm launched its second fund in four years a few months ago, a $100 million investment fund. Multicoin Capital’s Tushar Jain noted that the fundraising was backed by undisclosed institutional liquidity providers (LP) and a smattering of crypto founders. In 2019, Multicoin’s first fund went long and huge on the internet-of-things startup, reaping a 6,800 percent Plus return in the months that followed.
Speaking of the funds, Jain noted that Multicoin prefers “making investments that are in categories that people are not taking seriously yet, or don’t realize.” The announcement of Multicoin’s $100 million funds came on the heels of Andreessen Horowitz’s reported $1 billion crypto venture fund. Several experts believed such funding meant it was the right time for new capital to be flooded into the market.
Multicoin’s 11-person team will spend the next few years looking to fund crypto startups that others might overlook. Several startups are already on the books, and more are expected to join as Multucoin hopes to use diversification as a tool for its benefit.
Describing blockchain as the best social goods in the world, Jain stated that he wants to invest in blockchain businesses that are developing “sovereign software” for a large user base. He identified the decentralized nature of blockchain initiatives as being naturally compatible with the do-gooder values of environmental, social, and corporate governance investing.