Blockchain VC Shima Capital Debuts $200M Web3 Fund
Shima Capital, a new venture firm focused on early-stage blockchain projects, has launched its debut fund to back new digital asset companies – and has received significant backing in doing so.
Shima Capital Fund I raised $200 million from several high-profile crypto investors, including Dragonfly Capital, Animoca Brands and OKX, the company announced on Wednesday. The fund is set to deploy between $500,000 and $2 million in pre-funding for crypto and blockchain-focused companies at the intersection of consumer products, decentralized infrastructure and futuristic blockchain technology.
In particular, Shima has identified decentralized identity, decentralized social media, decentralized autonomous organizations (DAOs), blockchain games, metaverse and decentralized finance (DeFi) as target areas. On the blockchain infrastructure side, the fund also plans to invest in layer-1 and layer-2 technology, as well as projects focused on security and zero-knowledge proof development.
Capital infused into early-stage companies will go toward hiring and retaining talent, building community, marketing and conducting technical research and development, Shima said.
Web3 aims to revolutionize participation in a wide range of fields, from technology to art. However, it needs the participants to see what the potential is, he claims @nitingaurfounder and director of @IBM Digital Asset Labs https://t.co/ThiJmisXPS
— Cointelegraph (@Cointelegraph) March 13, 2022
Founded in 2021 by crypto hedge fund investor Yida Gao, Shima Capital has recruited a leadership team that includes the former head of DeFi at Ripple Labs, a former venture partner at Old Fashion Research, and the former head of talent at Atomic VC.
Shima’s new venture fund shows that VCs are still attracted to crypto and Web3’s value proposition despite the ongoing bear market. The downtrend, which has been brutal even by crypto standards, has washed out overextended investors, flawed stablecoin projects, and centralized financial companies that failed to maintain proper risk management practices.
Related: Web3 dominates venture capital interest in the blockchain industry in Q2 2022
In the background, venture capital has continued to fund blockchain startups, especially those with Web3 ambitions. According to Cointelegraph Research, Web3 companies accounted for 42% of crypto VC raises in the second quarter.
