Key Takeaways
- • Multicoin Capital announced Venture Fund III, a $430 million fund targeting early-stage and later-stage crypto projects despite a broader market downturn.
- • Early-stage investments range from $500,000 to $25 million, drawing on Venture Fund III and the firm's evergreen liquid fund, which holds assets in the single-digit billions; later-stage projects are eligible for up to $100 million.
- • Managing Partner Kyle Samani said the check-size figures are not rigid limits, and the firm may deploy larger sums in some cases.
- • The fund prioritizes data-aggregating DAOs, open finance, Web3 infrastructure, and consumer social applications, marking a shift toward consumer-facing investments from the firm's historical focus on infrastructure.
Summary
Crypto venture firm Multicoin Capital has announced Venture Fund III, a $430 million vehicle aimed at early-stage and later-stage blockchain projects. According to CoinDesk, the firm is proceeding with the raise despite a market slump that has pressured a wide range of crypto investors. Other reports on the announcement describe the fund as having commitments of up to $430 million, with one investor profile listing a $422 million vehicle raised in January 2022, a figure that differs slightly from the headline total.
The fund will focus on data-aggregating decentralized autonomous organizations (DAOs), open finance, Web3 infrastructure, and consumer social opportunities. Early-stage projects can receive between $500,000 and $25 million from a combination of Venture Fund III and Multicoin's evergreen liquid fund, which has assets in the single-digit billions. Later-stage projects are eligible for up to $100 million drawn from the same two vehicles.
Managing Partner Kyle Samani told CoinDesk in an interview that these figures are not fixed. "We don't have a strict rule like '$25 million max' for this size deal," Samani said. "We don't think in those terms." He indicated some projects may receive larger allocations.
Founded in 2017, Multicoin has historically backed technology and infrastructure companies. Its past investments include leading a $3.5 million seed round in 2019, alongside Intel Capital, for blockchain data startup dfuse, which develops tools to make blockchain data more accessible. The firm now plans to direct a growing share of its time and capital toward consumer-facing businesses. A press release stated, "We are spending an increasing percentage of our time on things that directly face consumers and that are poised to reshape massive consumer-facing markets."
Multicoin's leadership indicated it will continue deploying capital across a broad range of projects during the downturn, positioning the fund as a counter-cyclical bet on the sector's next phase.
The fund will focus on data-aggregating decentralized autonomous organizations (DAOs), open finance, Web3 infrastructure, and consumer social opportunities. Early-stage projects can receive between $500,000 and $25 million from a combination of Venture Fund III and Multicoin's evergreen liquid fund, which has assets in the single-digit billions. Later-stage projects are eligible for up to $100 million drawn from the same two vehicles.
Managing Partner Kyle Samani told CoinDesk in an interview that these figures are not fixed. "We don't have a strict rule like '$25 million max' for this size deal," Samani said. "We don't think in those terms." He indicated some projects may receive larger allocations.
Founded in 2017, Multicoin has historically backed technology and infrastructure companies. Its past investments include leading a $3.5 million seed round in 2019, alongside Intel Capital, for blockchain data startup dfuse, which develops tools to make blockchain data more accessible. The firm now plans to direct a growing share of its time and capital toward consumer-facing businesses. A press release stated, "We are spending an increasing percentage of our time on things that directly face consumers and that are poised to reshape massive consumer-facing markets."
Multicoin's leadership indicated it will continue deploying capital across a broad range of projects during the downturn, positioning the fund as a counter-cyclical bet on the sector's next phase.
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.