Key Takeaways
- • Variant raised $450 million across two new venture funds on July 28, 2022: a $300 million opportunity fund and a $150 million seed-stage fund focused on Web3 and decentralized finance investments.
- • The firm, led by general partners Li Jin, Jesse Walden, and Spencer Noon, is deploying capital across four investment buckets: decentralized finance, blockchain infrastructure, consumer applications in Web3, and projects experimenting with new forms of ownership.
- • Variant's existing portfolio includes high-profile crypto assets such as Magic Eden (NFT platform), Goldfinch (decentralized credit), and Uniswap (decentralized exchange), demonstrating established market positioning.
- • The fundraise occurs during a pronounced crypto market downturn characterized by declining trading volumes, user attrition, and broad price deterioration, yet Variant maintains a bullish long-term thesis on Web3 viability.
- • The capital raise reflects broader institutional conviction in crypto venture investing despite market headwinds, as other crypto-focused managers including Jason Choi, Darryl Wang, and David Gan simultaneously launched competing funds targeting the Web3 space.
Summary
Variant, a crypto-focused venture capital firm, announced the closing of $450 million in capital across two newly established funds targeting Web3 and decentralized finance opportunities. The firm structured the capital commitment as a $300 million opportunity fund designed for growth-stage investments alongside a $150 million seed fund focused on earlier-stage venture projects. The announcement was made on Thursday, July 28, 2022, and shared with The Block.
The investment strategy reflects Variant's historical investment thesis across four distinct opportunity categories: decentralized finance protocols, blockchain infrastructure layer projects, consumer-facing Web3 applications, and experimental ownership models enabled by tokens and NFTs. Leadership of the two new funds remains with the firm's general partners Li Jin, Jesse Walden, and Spencer Noon. Variant's previous fundraising activity includes a 2020 first fund close and a $110 million fund announced following the firm's 2021 merger with Atelier Ventures.
The firm's existing portfolio demonstrates substantial exposure to significant crypto assets. Notable holdings include Magic Eden, a leading NFT trading platform; Goldfinch, a decentralized credit protocol; and Uniswap, one of the largest decentralized exchanges by trading volume. These investments underscore Variant's focus on foundational Web3 infrastructure and consumer adoption mechanisms.
The capital deployment occurs against a materially challenged backdrop for crypto markets. Trading volumes across platforms have declined sharply, user engagement has contracted, and asset prices have experienced broad-based depreciation. Despite these headwinds, Variant's fundraise is not isolated within the venture ecosystem. Other crypto-native investors including Jason Choi and Darryl Wang launched a new Web3-focused fund during summer 2022, while David Gan, a former Huobi executive, closed a fund of funds vehicle in June 2022. Variant's positioning reflects sustained institutional conviction that Web3 and decentralized finance represent viable long-term investment categories despite near-term market stress.
The investment strategy reflects Variant's historical investment thesis across four distinct opportunity categories: decentralized finance protocols, blockchain infrastructure layer projects, consumer-facing Web3 applications, and experimental ownership models enabled by tokens and NFTs. Leadership of the two new funds remains with the firm's general partners Li Jin, Jesse Walden, and Spencer Noon. Variant's previous fundraising activity includes a 2020 first fund close and a $110 million fund announced following the firm's 2021 merger with Atelier Ventures.
The firm's existing portfolio demonstrates substantial exposure to significant crypto assets. Notable holdings include Magic Eden, a leading NFT trading platform; Goldfinch, a decentralized credit protocol; and Uniswap, one of the largest decentralized exchanges by trading volume. These investments underscore Variant's focus on foundational Web3 infrastructure and consumer adoption mechanisms.
The capital deployment occurs against a materially challenged backdrop for crypto markets. Trading volumes across platforms have declined sharply, user engagement has contracted, and asset prices have experienced broad-based depreciation. Despite these headwinds, Variant's fundraise is not isolated within the venture ecosystem. Other crypto-native investors including Jason Choi and Darryl Wang launched a new Web3-focused fund during summer 2022, while David Gan, a former Huobi executive, closed a fund of funds vehicle in June 2022. Variant's positioning reflects sustained institutional conviction that Web3 and decentralized finance represent viable long-term investment categories despite near-term market stress.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.