Key Takeaways
- • 1confirmation raised $125 million for its third venture fund, representing a nearly 3x increase from its $45 million second fund (2019) and a 4.8x increase from its $26 million inaugural fund (2017), signaling accelerating capital deployment in crypto-focused venture investing.
- • Fund III will target cryptocurrency startups, digital assets, and NFT platforms aligned with 1confirmation's thesis that crypto will empower individuals over institutions, enable new online monetization models, and drive decentralized entrepreneurial communities via social platforms.
- • 1confirmation's portfolio spans high-profile crypto assets including OpenSea and Rarible (NFT platforms), dYdX and Primitive (decentralized exchanges), Notional (DeFi lending), and protocols including Polkadot, Cosmos, and Acala, demonstrating diversified exposure across DeFi, NFT, and blockchain infrastructure sectors.
- • The fundraise occurs within a broad capital surge in crypto venture markets, with Multicoin Capital raising $100 million in May 2021 and Andreessen Horowitz reportedly securing at least $800 million for its dedicated crypto fund, indicating institutional validation of digital asset investing.
- • Nick Tomaino, early Coinbase product manager and 1confirmation founder, will lead the fund while Richard Chen was promoted to general partner; previous limited partners have included Mark Cuban, Marc Andreessen, Balaji Srinivasan, and Brendan Eich, though Fund III's current backers remain undisclosed.
Summary
Crypto venture capital firm 1confirmation has closed a $125 million third fund dedicated to investing in cryptocurrency startups, digital assets, and NFT platforms. The fund represents a significant scaling of the firm's capital base—increasing 2.78x from its $45 million Fund II (2019) and 4.81x from its $26 million Fund I (2017)—and reflects accelerating institutional appetite for crypto-focused venture investing in May 2021.
Founded by Nick Tomaino, an early Coinbase product manager, 1confirmation maintains a consistent investment thesis articulated since its launch four years prior: that cryptocurrency will redistribute economic power from institutions to individuals, has fundamentally transformed online monetization, and will catalyze the emergence of decentralized entrepreneurial communities through social platforms. The firm's philosophy has remained stable, but the scale of capital deployment has expanded substantially, reflecting maturing market conditions and increased LP confidence in digital asset ventures.
1confirmation's existing portfolio demonstrates broad exposure across multiple crypto subsectors. Holdings include NFT marketplaces OpenSea and Rarible; decentralized finance platforms such as dYdX, Primitive, and the lending protocol Notional; and blockchain protocols including Polkadot, Cosmos, and Acala. This diversification spans infrastructure, financial primitives, and application-layer assets, positioning the fund across multiple value capture points within the crypto ecosystem.
The Fund III fundraise occurs during an exceptional period for crypto-focused venture capital. Multicoin Capital announced a $100 million fund in May 2021, while venture giant Andreessen Horowitz was reportedly in the process of securing at least $800 million for its dedicated crypto fund. These concurrent fundraises underscore institutional recognition of digital assets as an investable alternative asset class and suggest continued capital inflows into the sector throughout 2021.
Richard Chen was promoted to general partner at the firm. Tomaino declined to disclose Fund III's limited partners, though previous investors in 1confirmation vehicles have included Mark Cuban, Marc Andreessen, Balaji Srinivasan, and Brendan Eich—indicating a network of prominent technology and cryptocurrency figures backing the firm's strategy.
Founded by Nick Tomaino, an early Coinbase product manager, 1confirmation maintains a consistent investment thesis articulated since its launch four years prior: that cryptocurrency will redistribute economic power from institutions to individuals, has fundamentally transformed online monetization, and will catalyze the emergence of decentralized entrepreneurial communities through social platforms. The firm's philosophy has remained stable, but the scale of capital deployment has expanded substantially, reflecting maturing market conditions and increased LP confidence in digital asset ventures.
1confirmation's existing portfolio demonstrates broad exposure across multiple crypto subsectors. Holdings include NFT marketplaces OpenSea and Rarible; decentralized finance platforms such as dYdX, Primitive, and the lending protocol Notional; and blockchain protocols including Polkadot, Cosmos, and Acala. This diversification spans infrastructure, financial primitives, and application-layer assets, positioning the fund across multiple value capture points within the crypto ecosystem.
The Fund III fundraise occurs during an exceptional period for crypto-focused venture capital. Multicoin Capital announced a $100 million fund in May 2021, while venture giant Andreessen Horowitz was reportedly in the process of securing at least $800 million for its dedicated crypto fund. These concurrent fundraises underscore institutional recognition of digital assets as an investable alternative asset class and suggest continued capital inflows into the sector throughout 2021.
Richard Chen was promoted to general partner at the firm. Tomaino declined to disclose Fund III's limited partners, though previous investors in 1confirmation vehicles have included Mark Cuban, Marc Andreessen, Balaji Srinivasan, and Brendan Eich—indicating a network of prominent technology and cryptocurrency figures backing the firm's strategy.
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