Key Takeaways
- • 10T Holdings plans to launch a third digital-assets fund, the 10T DAE Fund 3.0, expected to raise $500 million, according to a Tuesday regulatory filing.
- • The firm currently manages about $800 million across the 10T Fund and the 10T DAE Expansion Fund; the new fund would lift assets under management above $1 billion.
- • The existing two funds focus on mid- to late-stage private crypto businesses and do not invest in cryptocurrencies, venture projects or early-stage protocols.
- • The first two funds have invested in 14 companies, including Kraken, eToro, Gemini, Ledger and Deribit.
- • CEO Dan Tapiero says the number of crypto companies valued at $1 billion or more has grown from about a dozen at the firm's founding to roughly 70.
Summary
Private equity firm 10T Holdings is preparing to launch a third fund focused on digital assets companies, the 10T DAE Fund 3.0, which is expected to be $500 million according to a Tuesday regulatory filing. If raised as expected, the fund would bring the firm's assets under management to more than $1 billion, up from about $800 million currently held across the 10T Fund and the 10T DAE Expansion Fund.
The firm's existing funds invest across three segments of the crypto ecosystem: digital asset ecosystem gateways, blockchain infrastructure, and what 10T considers next-generation financial services. Dan Tapiero, the firm's CEO, said the strategy's focus on mid- to late-stage private businesses differentiates 10T from many other offerings, as the existing funds do not invest in cryptocurrencies, venture projects or early-stage protocols.
The 14 companies the first two funds have invested in to date include Kraken, eToro, Huobi, Mercado Bitcoin, Gemini, Bitfury, Ledger, Helium, Figment, Prime Trust, Deribit, Figure, Animoca Brands and Ledn. Tapiero said the firm expects companies in those funds to be in the S&P 500 within three to six years. He also noted that when 10T was founded, there were roughly a dozen crypto companies with a market capitalization of $1 billion or more, compared with about 70 today, and said demand for investing in B and C rounds of larger companies has been strong.
Tapiero estimated at Blockworks' Digital Asset Summit in September that the crypto market, currently about $2.5 trillion, could reach $20 trillion within five years, and called a bitcoin price of $500,000 within that span "very reasonable." Bitcoin was trading at roughly $51,200 at noon ET, according to CoinGecko.
The firm's existing funds invest across three segments of the crypto ecosystem: digital asset ecosystem gateways, blockchain infrastructure, and what 10T considers next-generation financial services. Dan Tapiero, the firm's CEO, said the strategy's focus on mid- to late-stage private businesses differentiates 10T from many other offerings, as the existing funds do not invest in cryptocurrencies, venture projects or early-stage protocols.
The 14 companies the first two funds have invested in to date include Kraken, eToro, Huobi, Mercado Bitcoin, Gemini, Bitfury, Ledger, Helium, Figment, Prime Trust, Deribit, Figure, Animoca Brands and Ledn. Tapiero said the firm expects companies in those funds to be in the S&P 500 within three to six years. He also noted that when 10T was founded, there were roughly a dozen crypto companies with a market capitalization of $1 billion or more, compared with about 70 today, and said demand for investing in B and C rounds of larger companies has been strong.
Tapiero estimated at Blockworks' Digital Asset Summit in September that the crypto market, currently about $2.5 trillion, could reach $20 trillion within five years, and called a bitcoin price of $500,000 within that span "very reasonable." Bitcoin was trading at roughly $51,200 at noon ET, according to CoinGecko.
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.