Key Takeaways
- • Inception Capital, formerly OP Crypto, closed its inaugural fund, OP Fund of Funds I LP, at $30 million, according to founder and general partner David Gan, who shared the figure exclusively with TechCrunch.
- • The vehicle targets family offices and high-net-worth individuals seeking diversified exposure to early-stage crypto venture deals, and is backed by investors including Mirana, FJ Labs and Serafund.
- • The fund plans to commit to about five new emerging crypto managers annually rather than invest directly in projects, protocols or startups, and has already deployed roughly 30% of capital.
- • Its five manager investments are Syncracy Capital, Escape Velocity, Alliance, OrangeDAO and Everyrealm, with co-investments alongside Bain Capital Ventures, ParaFi Capital, Multicoin Capital and a16z partners Marc Andreessen and Chris Dixon.
- • The $30 million raise sits alongside the firm's existing $50 million Venture Fund I, and Gan described the crypto fund-of-funds segment as "very small" relative to the billions of dollars deployed in traditional fund-of-funds markets.
Summary
Early-stage web3 firm Inception Capital, formerly known as OP Crypto, has closed its inaugural fund at $30 million, according to David Gan, the firm's founder and general partner, who shared the news exclusively with TechCrunch. The raise is separate from the firm's existing $50 million Venture Fund I. The new vehicle, OP Fund of Funds I LP, targets family offices and high-net-worth individuals seeking what Gan described as "diversified" exposure to early-stage crypto venture deals. Backers include Mirana, FJ Labs and Serafund.
Gan positioned the fund as a risk-adjusted way for allocators to access the asset class. "Instead of family offices trying to make the best investments themselves, this vehicle is a good hedge and risk adjusted downside vehicle to get crypto exposure," he said. Rather than backing individual projects, protocols or startups, the fund plans to invest in roughly five new investment managers and funds each year, giving investors exposure to a diversified portfolio of institutional managers. Gan said the strategy relies on "putting our money in the hands of other institutional managers."
The flagship will focus on emerging managers whom Gan described as "up and coming" and "hungry" for early-stage opportunities. The fund has deployed about 30% of its capital to date. Its five manager investments are Syncracy Capital, Escape Velocity, Alliance, OrangeDAO and Everyrealm. Inception Capital holds a general partner stake in the first two. The firm has also co-invested alongside Bain Capital Ventures, ParaFi Capital, Multicoin Capital and a16z's Marc Andreessen and Chris Dixon.
Gan characterized the timing as favorable, saying, "This is a good calendar year to double down on the space, invest early and back entrepreneurs." He also noted that while the fund-of-funds segment is a massive market with billions of dollars in capital overall, the crypto subset remains "very small."
Gan positioned the fund as a risk-adjusted way for allocators to access the asset class. "Instead of family offices trying to make the best investments themselves, this vehicle is a good hedge and risk adjusted downside vehicle to get crypto exposure," he said. Rather than backing individual projects, protocols or startups, the fund plans to invest in roughly five new investment managers and funds each year, giving investors exposure to a diversified portfolio of institutional managers. Gan said the strategy relies on "putting our money in the hands of other institutional managers."
The flagship will focus on emerging managers whom Gan described as "up and coming" and "hungry" for early-stage opportunities. The fund has deployed about 30% of its capital to date. Its five manager investments are Syncracy Capital, Escape Velocity, Alliance, OrangeDAO and Everyrealm. Inception Capital holds a general partner stake in the first two. The firm has also co-invested alongside Bain Capital Ventures, ParaFi Capital, Multicoin Capital and a16z's Marc Andreessen and Chris Dixon.
Gan characterized the timing as favorable, saying, "This is a good calendar year to double down on the space, invest early and back entrepreneurs." He also noted that while the fund-of-funds segment is a massive market with billions of dollars in capital overall, the crypto subset remains "very small."
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