Introduction
Kraken Ventures, the investment branch of cryptocurrency trading platform Kraken, is in the process of pooling resources for its subsequent investment fund. As they navigate the complex terrain of the investment landscape, the company is actively reaching out to potential backers, as informed by insiders.
Targeting an Impressive New Fund
Kraken Ventures has set its sights on an ambitious $100 million target for this new fund. This figure is a notable leap from the initial fund which accumulated $65 million and was finalized in 2021. Brandon Gath, the chief partner at Kraken Ventures, validated their intentions to secure another fund. He emphasized the company’s commitment to bolster its current mission and ensure continuous support to innovators from their early investment stages to their eventual initial public offerings (IPOs).
Gath highlighted the team’s profound expertise in preliminary investments, citing their extensive portfolio spanning blockchain, fintech, and advanced technology sectors. He asserted, “Offering smaller funds is in the best interest of both business founders and investors. While the former gains a more engaged partner, statistics have consistently shown that these smaller funds surpass their larger counterparts in performance.”
Despite operating autonomously with its independent financial resources, Gath pointed out the robust bond Kraken Ventures shares with Kraken.
The Present Crypto Venture Scene
The current environment for cryptocurrency-focused venture capital isn’t particularly favorable, with a noted decrease in investment amounts accompanied by a cautious market outlook. The previous year witnessed the downfall of notable crypto entities like Terraform Labs, Three Arrows Capital, and FTX, leading to a significant drop in investor enthusiasm and subsequent investments in this domain.
Recent studies by The Block Research Pro indicate a downward trend in cryptocurrency startup investments for the fifth consecutive quarter. This decline seems likely to continue. Currently, the third quarter has witnessed a projected total investment of nearly $2.5 billion. This is in sharp contrast to the substantial $6 billion invested during the same period the prior year.
Yet, some startups have managed to secure significant advanced-stage funding. For instance, Worldcoin developer Tools for Humanity secured $115 million, LayerZero Labs declared a $120 million fund, while crypto gadget wallet producer Ledger amassed $108 million.
Kraken Ventures’ Strategy
The strategy for Kraken Ventures remains consistent with their previous fund’s blueprint. They have previously backed businesses like Blockdaemon, a staking infrastructure company, Kiln, a liquid staking platform, Anchorage, a custody company, and the Ethereum expansion network, LayerN.
Elaborating on their strategy, Gath mentioned, “A substantial chunk of our fund is allocated for succeeding investments. We view our association with our business founders as an enduring collaborative journey.” He further distinguished Kraken Ventures from numerous tactical investors who don’t set aside a specialized capital reserve.
