Enterprise capital agency Lightspeed Faction has created a $285 million fund for crypto startups, in keeping with a Nov. 9 announcement. The fund will concentrate on “early stage blockchain initiatives” and also will present capital as these initiatives scale, the announcement acknowledged.
At Faction, no entrepreneur will ever must reply: “why crypto?” We’re totally red-pilled.
We’re popping out of stealth & asserting the launch of Lightspeed Faction Fund I, a $285M early-stage enterprise fund devoted solely to crypto https://t.co/oUiAh6t5Sp
— Faction (@FactionVC) November 9, 2023
Lightspeed Faction stated it will probably present founders entry to “a staff of skilled blockchain buyers and operators,” together with members of the Amber Group, Blockchain.com, and Coinbase groups. The agency is a three way partnership between the extra conventional tech-oriented fund Lightspeed Enterprise Companions and the crypto-only fund, Faction. It makes an attempt to mix the experience of each organizations with a purpose to maximize success.
Lightspeed Faction co-founder Banafsheh Fathieh claimed that the $285 million fund is required for the various promising blockchain initiatives which might be sprouting up every day, stating:
“[C]rypto is a generation-defining expertise, and we’re totally dedicated to investing behind the most effective entrepreneurs trying to propel blockchain expertise ahead. The blockchain ecosystem is stuffed with promising initiatives trying to disrupt all the things from monetary programs to telecommunication.”
Within the announcement, Lightspeed Faction claimed that it funded a number of blockchain startups in the course of the bear market that turned out to be successes, together with Crossmint, Lens, Narya.ai, Skip.cash, Matter Labs, and others. It usually will get concerned throughout seed and Collection A rounds.
Crypto enterprise capital funding fell to a three-year low in the third quarter of 2023, with many funds seemingly being scared away by low crypto costs and an absence of media consideration in comparison with the bull market of 2021. Nevertheless, some initiatives have nonetheless managed to achieve multi-million dollar raises even with these decrease ranges of funding.