Valkyrie aims to raise $30 million; Is the crypto investment rut over?
Crypto asset manager Valkyrie is set to raise $30 million for its venture capital arm, TechCrunch reported.
Valkyrie has reportedly hired Lluis Pedragosa to lead the new Valkyrie Ventures with his investment experience of over 10 years.
Valkyrie’s new arm for further web3 investment
Pedragosa explained that the vertical will support companies that provide a “web2 user experience” with “web3 infrastructure”, adding: “The idea for us is that we want to invest in what we call the middleware layer, which is similar to the infrastructure layer – everything that is between an application and layer one protocols and in what we call web 2.5.
He also specified that Valkyrie’s financing arm will not invest Valkyrie’s equity capital, but use the external investments from institutions and high net worth individuals (HNIs) to raise the stipulated $25-$30 million in funding.
According to Pedragosa, the fund is strategic for Valkyrie because it focuses on emerging infrastructure that the company can use for its digital asset management operations, such as security, authentication, compliance, data management, storage, networking, communication, governance, payments and transaction firms. According to him, the company would concentrate on financing the resources required by developers to create decentralized businesses.
«Traditional VCs for companies move relatively slowly, or slower than financial VCs. Sometimes you need to have a master in the business who wants to support your investment in, for example, a company. So that’s why I stay away from it, why [our fund] is separate. I do not need to convince anyone. If we think it’s a good investment, we just do it, Pedragosa said.
Notably, the news of Valkyrie’s investment arm comes on the back of a recovery in the crypto market. The global cryptocurrency market capitalization passed $1 trillion on July 20 after weeks of investor fear and uncertainty.
Cryptocurrencies continue to flow
While it remains to be seen whether the market recovery is sustainable, several web3 companies have announced increased investments. Blockdaemon, a crypto infrastructure provider, has reportedly acquired Danish startup Sepior, a provider of key management services for institutional clients, for an undisclosed sum.
According to another report, Tribe Capital has raised $25 million from outside investors and established its incubator program under Tribe Crypto Labs.
Meanwhile, according to the latest industry reports, FTX’s Sam Bankman-Fried is in discussions to secure new funding even after continued spending in the recent collapse of the digital asset market.
According to Bloomberg sources, both FTX and its American subsidiary FTX US are fundraising. They say that FTX wants to raise money at about the same value as the fundraiser in January. While FTX US raised $400 million at a valuation of $8 billion, FTX claimed in January that it had raised $400 million at a valuation of $32 billion.
That said, CoinShare’s recent report also found that investment in the digital asset market has continued for the third consecutive week.
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