Blockchain-focused venture capital firm Pantera Capital announced that it has closed the process of raising funds for its third blockchain fund after securing $160 million. The firm was targeting to raise $175 million.
According to the monthly official letter published on March 27, the California-based venture capital has already invested $38 million from its Venture Fund III into 11 companies. With the rest of the amount, the fund aims to invest in another 24 companies, putting $3.5 million on average on each blockchain project. The VC is also targeting to receive 11 percent average equity stakes from its investments.
The crypto-focused venture fund is betting big on infrastructure and crypto exchanges as it has put 35.1 percent and 29.4 percent on projects working on these sectors respectively.
“Some of the most successful investments in our previous two venture funds have been cryptocurrency exchanges and we still think there’s opportunity to invest in them. To date, 29% of Venture Fund III’s capital has been invested in this category,” Pantera noted.
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“With VFI and VFII, we invested in two types of exchanges. First, we were investing in exchanges for buying and selling Bitcoin. Then, as some of the exchanges were bound in overseas jurisdictions, we invested in more exchanges set up geographically.”
Institutional Clients will Come
The firm also detailed that with the new fund, it is going to target the institutional grade crypto exchanges.
“With VFIII, we are investing in two types of exchanges. The first is institutional-grade exchanges, like the Fund’s first investment, Bakkt. The idea with Bakkt is that, if you’re a hedge fund on Wall Street, a high-frequency trader, or anybody who is used to trading on traditional exchanges, this is the exchange you would go to trade cryptocurrencies,” the venture capital fund stated.
Last month, Finance Magnates reported that Venture Fund III has already raised $125 million. Though by the end of last year, the company already secured two-thirds of the target amount, the slowdown in the market acted against the company.