Lightspeed Faction Introduces $285M Crypto Startup Fund: Details
- Venture capital firm Lightspeed Faction debuted a $285 million crypto startup fund.
- The fund will invest in “early stage blockchain projects” as they expand operations.
- The firm will provide startups with access to a team of experienced blockchain investors.
- It has investments in Crossmint, Lens, Narya.ai, Skip.money, Matter Labs, and more.”
Lightspeed Faction, a venture capital firm, has announced a whopping $285 million investment fund for startups focused on digital assets and blockchain technology. As per the official announcement, the fund will focus on “early stage blockchain projects” and provide capital as these projects scale operations and expand their user base.
As per the official press release shared on November 9, in addition to the new fund, Lightspeed Faction will also “serve as a seasoned resource to blockchain entrepreneurs on a range of topics from tokenomics to business scaling.” The venture capital firm stated that it will provide startups with access to a team of experienced blockchain investors and operators, servicing the industry at a time when many have fled.
Banafsheh Fathieh, co-founder and general partner of Lightspeed Faction, stated:
“We are steadfast in our conviction that crypto is a generation-defining technology, and we are fully committed to investing behind the best entrepreneurs looking to propel blockchain technology forward. The blockchain ecosystem is full of promising projects looking to disrupt everything from financial systems to telecommunication and we look forward to collaborating with them to nurture the next phase of blockchain innovation.”
As per the release, Lightspeed Faction mostly invests in seed and Series A rounds of crypto startups that provide value to investors via blockchain technology. The firm also took to social media platform X (formerly known as Twitter) to reveal its new crypto fund.
The VC firm also added that it has invested in crypto startups throughout the bear market when multiple firms abandoned the industry. Lightspeed Faction added that it “already boasts an established track record of investments across the blockchain ecosystem, including investments in Crossmint, Lens, Narya.ai, Skip.money, Matter Labs, and more.”
The firm’s founding members, Samuel Harrison and Banafsheh Fathieh, have officially deployed over $500 million of capital across early-stage and blockchain-focused businesses and startups. Faction stated that the founding members have played a crucial role in backing top blockchain entities including Aave, Arbitrum, Blockdaemon, Figure, Immutable, NEAR, Republic, Wintermute, and Matter Labs, amongst others.
“We’re particularly excited by net new behaviors and outcomes enabled by the unique properties of blockchain technology. We’ve been doing this for a long time and intend to be a dependable financing partner in the cycles yet to come,” said Harrison.
As reported earlier by BitcoinWisdom, venture capital firm Sequoia Capital reduced its crypto investment fund by 66%. The fund’s value was $585 million and has now been reduced to $200 million owing to the 2022 crypto market crash.