Key Takeaways
- • Lattice, a crypto-focused venture capital firm, has filed SEC documents to raise a third fund, building on its $60 million second fund raised in 2022 and its track record investing in early-stage crypto since 2021.
- • The firm has deployed capital across 81 projects, including notable investments in Immunefi (bug bounty platform) and Protocol Labs (Filecoin developer), demonstrating established conviction in infrastructure and security layers.
- • Crypto startup fundraising has exceeded $8 billion year-to-date in 2024, already surpassing the $7.3 billion total for all of 2023, signaling renewed institutional appetite despite VC crypto investments hitting a two-year low of $1.75 billion in Q3 2024.
- • The third fund raise arrives amid cautious VC optimism as the market transitions from a prolonged bear cycle (2022-2023) into a bull market phase, though current investment levels remain substantially below the $11.2 billion peak reached in Q1 2022.
Summary
Lattice, a venture capital firm specializing in early-stage crypto investments, is preparing to raise a third fund following SEC filings submitted on Monday, December 2, 2024. The firm's co-founder Regan Bozman declined to disclose the target fund size, though the company's previous fund raised $60 million in 2022—a threefold increase from its initial capital raise.
The firm has maintained consistent investment activity across the crypto cycle, deploying its second $60 million fund during the prolonged bear market of 2022 and 2023. Over its operational history since 2021, Lattice has built a portfolio of 81 projects, including prominent positions in Immunefi, a bug bounty platform addressing smart contract vulnerabilities, and Protocol Labs, the core development team behind Filecoin, a decentralized cloud storage protocol. This investment track record reflects a focused thesis on infrastructure and security within digital asset ecosystems.
The third fund announcement arrives during a marked inflection in crypto market sentiment. Crypto startups have raised over $8 billion in 2024 year-to-date, surpassing the entire $7.3 billion raised across 2023, indicating resurgent institutional interest. However, broader venture capital engagement with crypto remains measured relative to historical peaks. Q1 2022 marked the high-water mark for global crypto VC investment at $11.2 billion, while Q3 2024 recorded a two-year low of $1.75 billion in quarterly deployment—reflecting the cyclical nature of crypto capital flows and investor caution despite improving market conditions.
Lattice's fundraising activity reflects a sector-wide pattern of cautiously optimistic capital accumulation. Several crypto-focused investment firms have simultaneously announced third and fourth fund raises, with notable peers including Haun Ventures ($1 billion for two funds), a16z crypto ($2.2 billion), and Multicoin Capital ($250 million for its third fund). This suggests institutional limited partners are repositioning capital to capture early-stage opportunities as market conditions improve, though deployment velocity remains constrained relative to the speculative excess observed in 2021 and early 2022.
The firm has maintained consistent investment activity across the crypto cycle, deploying its second $60 million fund during the prolonged bear market of 2022 and 2023. Over its operational history since 2021, Lattice has built a portfolio of 81 projects, including prominent positions in Immunefi, a bug bounty platform addressing smart contract vulnerabilities, and Protocol Labs, the core development team behind Filecoin, a decentralized cloud storage protocol. This investment track record reflects a focused thesis on infrastructure and security within digital asset ecosystems.
The third fund announcement arrives during a marked inflection in crypto market sentiment. Crypto startups have raised over $8 billion in 2024 year-to-date, surpassing the entire $7.3 billion raised across 2023, indicating resurgent institutional interest. However, broader venture capital engagement with crypto remains measured relative to historical peaks. Q1 2022 marked the high-water mark for global crypto VC investment at $11.2 billion, while Q3 2024 recorded a two-year low of $1.75 billion in quarterly deployment—reflecting the cyclical nature of crypto capital flows and investor caution despite improving market conditions.
Lattice's fundraising activity reflects a sector-wide pattern of cautiously optimistic capital accumulation. Several crypto-focused investment firms have simultaneously announced third and fourth fund raises, with notable peers including Haun Ventures ($1 billion for two funds), a16z crypto ($2.2 billion), and Multicoin Capital ($250 million for its third fund). This suggests institutional limited partners are repositioning capital to capture early-stage opportunities as market conditions improve, though deployment velocity remains constrained relative to the speculative excess observed in 2021 and early 2022.
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