Blockchain investment firm CoinFund launches $300 million Web3 fund

Quick take:

• The fund will support its portfolio companies as they move from seed to series A.
• It will also add new investments to the portfolio.
• The fund is led by veteran venture capitalist, David Pakman.

Crypto and blockchain investment company CoinFund has launched a $300 million Web3 fund backed by institutional investors, family offices and crypto entrepreneurs.

The fund’s limited partners include new backers such as Teacher Retirement System of Texas, Adams Street Partners, StepStone Group, Accolade Partners and Theta Capital Management.

CoinFund Ventures I will invest in early stage Layer-1 blockchains, Web3 infrastructure, gaming and NFT startups, including portfolio companies going from seed stage to Series A. It will also add new investments to the portfolio.

Founded in 2015, CoinFund previously invested in venture and liquidity opportunities in the blockchain sector with a focus on digital assets, decentralization technologies and key enabling infrastructure. The VC firm debuted an $83 million crypto startup fund last July.

The portfolio companies include Solana, Dapper Labs, blockchain infrastructure platform Blockdaemon and data indexing protocol The Graph. The VC firm led a $3.5 million funding round for Web3 startup DataWisp that closed last week.

CoinFund brought in veteran venture capitalist David Pakman as managing partner last September. Pakman joined CoinFund after 13 years at Venrock, a venture firm focused on investing in new technologies. He led the Series A round and sits on the board of Dapper Labs, and led the Series A round of Rarible. He also personally invested in Coinbase before its IPO.

“In my 30 years in technology, I have never seen a bigger opportunity than crypto and web3,” Pakman said. “We look forward to working with ambitious and driven entrepreneurs to build a permissionless, decentralized and community-owned internet, rewire the global financial system and unlock enormous intellectual property value.”

CoinFund Ventures I will allocate $6 million to $10 million to each company. Pakman told Coindesk that the majority of the fund will go towards new investments while a small number of portfolio companies may receive follow-on investments.

Venture capital firms continue to pour billions of dollars into Web3 amid a crypto bear market, signaling VC confidence in the space. CoinFund joins others, including a16z, which announced a $4.5 billion Web3 fund in May, and Multicoin Capital, which launched a $430 million fund in July to invest in Web3 projects.

Speaking to Coindesk, Pakman said that CoinFund has gone through three downturns and that the new fund has a life cycle of six to eight years.

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