Key Takeaways
- • SPiCE VC launched a $250 million blockchain fund (SPiCE II), five times larger than its inaugural $50 million tokenized vehicle, designed explicitly to attract institutional capital.
- • SPiCE I's portfolio included three public exits in 2021: INX Limited (INXD), Lottery.com (LTRY), and Bakkt (BKKT), demonstrating successful deployment of early-stage blockchain infrastructure investments.
- • SPiCE II adopts a hybrid structure combining traditional venture capital with a tokenized component (size to be determined by investor demand), enabling larger check sizes and lead investment positions across a broader range of portfolio companies.
- • The fund's investment thesis has expanded beyond financial verticals to encompass gaming, retail, healthcare, and supply chain management, reflecting blockchain's widened industrial application since 2017.
- • SPiCE VC is conducting a roadshow in Dubai to source institutional limited partners, signaling geographic diversification in fundraising strategy.
Summary
SPiCE VC announced the launch of SPiCE II, a $250 million blockchain-focused venture fund positioned to capitalize on institutional investor demand for digital asset ecosystem exposure. The fund represents a significant scaling of the firm's initial offering: SPiCE I, which closed at $50 million in 2017, was structured as a fully tokenized vehicle targeting early-stage blockchain infrastructure companies. SPiCE II's substantially larger fund size reflects both the maturation of blockchain technology adoption and the firm's track record of identifying viable exit opportunities.
The inaugural fund's performance provides a credible foundation for the new vehicle. SPiCE I's portfolio achieved three public market exits in 2021, including INX Limited (INXD), a digital security platform; Lottery.com (LTRY), an online lottery operator; and Bakkt (BKKT), a cryptocurrency exchange infrastructure provider. These exits demonstrate successful identification and support of companies building foundational blockchain infrastructure during the technology's nascent financial services phase.
SPiCE II's structure reflects lessons learned from SPiCE I and tailored appeal to institutional allocators. Rather than deploying a fully tokenized model, the new fund adopts a hybrid approach combining traditional venture capital mechanics with a tokenized component whose size will be determined by investor demand. According to Tal Elyashiv, co-founder and managing partner, this structure enables the firm to take lead positions in more investment rounds and expand its portfolio breadth. The larger fund size substantially increases SPiCE VC's ability to deploy meaningful capital per investment and maintain meaningful ownership stakes across portfolio companies.
The fund's investment mandate has broadened considerably since SPiCE I's launch. Where the inaugural fund focused on blockchain applications within financial services, SPiCE II targets companies building blockchain infrastructure and distributed ledger solutions across gaming, retail, healthcare, and supply chain management verticals. This thematic expansion reflects the technology's evolution from a financial systems tool to a cross-industry infrastructure layer over the past five years.
SPiCE VC is conducting a fundraising roadshow in Dubai to source institutional limited partners, indicating a deliberate geographic expansion strategy to access non-traditional venture capital markets. The fund's explicit institutional targeting and larger capital base position SPiCE II to compete for allocation alongside mainstream venture vehicles while maintaining specialized blockchain ecosystem focus.
The inaugural fund's performance provides a credible foundation for the new vehicle. SPiCE I's portfolio achieved three public market exits in 2021, including INX Limited (INXD), a digital security platform; Lottery.com (LTRY), an online lottery operator; and Bakkt (BKKT), a cryptocurrency exchange infrastructure provider. These exits demonstrate successful identification and support of companies building foundational blockchain infrastructure during the technology's nascent financial services phase.
SPiCE II's structure reflects lessons learned from SPiCE I and tailored appeal to institutional allocators. Rather than deploying a fully tokenized model, the new fund adopts a hybrid approach combining traditional venture capital mechanics with a tokenized component whose size will be determined by investor demand. According to Tal Elyashiv, co-founder and managing partner, this structure enables the firm to take lead positions in more investment rounds and expand its portfolio breadth. The larger fund size substantially increases SPiCE VC's ability to deploy meaningful capital per investment and maintain meaningful ownership stakes across portfolio companies.
The fund's investment mandate has broadened considerably since SPiCE I's launch. Where the inaugural fund focused on blockchain applications within financial services, SPiCE II targets companies building blockchain infrastructure and distributed ledger solutions across gaming, retail, healthcare, and supply chain management verticals. This thematic expansion reflects the technology's evolution from a financial systems tool to a cross-industry infrastructure layer over the past five years.
SPiCE VC is conducting a fundraising roadshow in Dubai to source institutional limited partners, indicating a deliberate geographic expansion strategy to access non-traditional venture capital markets. The fund's explicit institutional targeting and larger capital base position SPiCE II to compete for allocation alongside mainstream venture vehicles while maintaining specialized blockchain ecosystem focus.
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