Key Takeaways
- • Venom Foundation and Iceberg Capital jointly launched a $1 billion venture capital fund (Venom Ventures Fund) focused on Web3 and blockchain investments, representing a significant capital commitment amid industry-wide funding constraints.
- • The fund targets early-stage startups from pre-seed through Series A rounds, with investment concentration in payments, asset management, decentralized finance (DeFi), banking services, and gaming within the Web3 ecosystem.
- • Venom Foundation operates as a Layer-1 blockchain licensed and regulated by the Abu Dhabi Global Market, positioning the fund within a regulated jurisdiction and distinguishing it as blockchain-agnostic in its investment approach.
- • The fund launch occurs during a marked contraction in Web3 venture funding—Q4 2022 saw less than $2.4 billion invested in crypto startups, the lowest quarterly total since Q4 2020, compared to $9.3 billion in Q4 2021, reflecting broader venture market pullback and crypto winter conditions.
- • The partnership combines traditional finance expertise from Iceberg Capital with Venom Foundation's blockchain infrastructure, targeting long-term industry trends and protocols across the Web3 landscape.
Summary
Venom Foundation, an Abu Dhabi-regulated Layer-1 blockchain platform, and investment manager Iceberg Capital have established a $1 billion venture capital fund designed to capitalize on Web3 and blockchain opportunities despite significant headwinds in the sector. The Venom Ventures Fund represents a substantial institutional commitment to early-stage Web3 companies during a period of reduced venture capital deployment across the cryptocurrency and blockchain industries.
The fund will deploy capital across pre-seed and Series A stage investments, with strategic focus areas including payments infrastructure, asset management solutions, decentralized finance protocols, blockchain-based banking services, and gaming applications. The fund's blockchain-agnostic mandate indicates flexibility in supporting projects built across multiple blockchain platforms rather than restricting capital deployment solely to Venom's native ecosystem. This positioning broadens the fund's investment thesis while potentially expanding Venom Foundation's influence across the broader Web3 infrastructure landscape.
The timing of this fund launch reflects a contrarian stance relative to current market conditions. Web3 venture funding experienced severe contraction throughout 2022, with Q4 2022 recording less than $2.4 billion in VC-backed startups—the lowest quarterly total since Q4 2020's approximately $1 billion. This marks a dramatic decline from Q4 2021's $9.3 billion peak. The broader venture capital market experienced a 35% year-over-year contraction in 2022, with global VC funding declining from $681 billion in 2021 to $445 billion in 2022. The crypto winter, compounded by the FTX collapse and investor wariness regarding nascent technology, has significantly dampened capital flows into Web3 startups.
The partnership leverages complementary strengths: Iceberg Capital brings traditional asset management and investment expertise, while Venom Foundation contributes blockchain infrastructure capabilities and regulatory credibility through its Abu Dhabi Global Market licensing. This $1 billion commitment signals confidence in long-term Web3 adoption and infrastructure development, positioning both entities to identify and support foundational projects as the sector matures and capital eventually returns to the space.
The fund will deploy capital across pre-seed and Series A stage investments, with strategic focus areas including payments infrastructure, asset management solutions, decentralized finance protocols, blockchain-based banking services, and gaming applications. The fund's blockchain-agnostic mandate indicates flexibility in supporting projects built across multiple blockchain platforms rather than restricting capital deployment solely to Venom's native ecosystem. This positioning broadens the fund's investment thesis while potentially expanding Venom Foundation's influence across the broader Web3 infrastructure landscape.
The timing of this fund launch reflects a contrarian stance relative to current market conditions. Web3 venture funding experienced severe contraction throughout 2022, with Q4 2022 recording less than $2.4 billion in VC-backed startups—the lowest quarterly total since Q4 2020's approximately $1 billion. This marks a dramatic decline from Q4 2021's $9.3 billion peak. The broader venture capital market experienced a 35% year-over-year contraction in 2022, with global VC funding declining from $681 billion in 2021 to $445 billion in 2022. The crypto winter, compounded by the FTX collapse and investor wariness regarding nascent technology, has significantly dampened capital flows into Web3 startups.
The partnership leverages complementary strengths: Iceberg Capital brings traditional asset management and investment expertise, while Venom Foundation contributes blockchain infrastructure capabilities and regulatory credibility through its Abu Dhabi Global Market licensing. This $1 billion commitment signals confidence in long-term Web3 adoption and infrastructure development, positioning both entities to identify and support foundational projects as the sector matures and capital eventually returns to the space.
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