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Last month Sequoia Capital launched its first crypto fund worth around $600 million
A 38-year-old private equity firm, Bain Capital’s venture affiliate goes by the name Bain Capital Ventures, has recently launched its crypto focused fund of approx $560 million.
Although BCV has been investing in crypto startups and projects for the past seven years, now, with the newly launched Crypto Fund, I will back such companies exclusively and directly. BCV filed the fund in September last year for the first time, ran it till November, and then closed it. The venture capital firm has invested more than $100 million in several crypto startups; however, details have not been disclosed.
Managing partner at Bain Capital Crypto, Stefan Cohen, said that the firm had become highly convinced that the whole world is at the beginning of a technology shift that will remain to be here for decades. In such time there is a need for a dedicated team and fund structure dedicated to such tasks, and that’s why the Bain Capital Crypto was formed.
Bain Capital Crypto is the part of BVC that would run the fund on its behalf.
The currency investment profile of Bain Capital Ventures includes crypto related firms like crypto lending platform BlockFi, Compound, a crypto reward application Lolli, and Digital Currency Group. BVC for the funds plans to back various crypto startups varied from DAOs to Layer 1 blockchains and a lot more.
In the current situations where the market has been experiencing heavy blows, it may seem that going with crypto, and crypto related projects may not result fruitfully. However, Bain Capitals is not worrying about short term fluctuations or correction of the crypto market. The firms look at it in a broader way and think of it in the long term considering investments in crypto startups for over a ten year time span.
Bringing diversity to the investment portfolio BVC is expected to invest in around 30 startups in the next two years. The plans for the firm are to participate in the governance of projects through investments in such a way it will be able to seek both token deals and equity in crypto projects. The investment plan also includes the purchase of tokens from the treasuries of DAOs.
Last month another prominent venture capital firm Sequoia Capital also launched its crypto fund somewhere around $500 to $600 million. Plans of capital firms also go somewhat the same as actively managing project tokens, stake them to participate in governance, and provide liquidity.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
