Kraken Ventures, the investment arm of the cryptocurrency exchange Kraken, is pushing ahead with its fundraising efforts for its second venture fund, aiming to secure an ambitious $100 million despite the challenging investment climate. The goal surpasses the $65 million collected for the firm’s inaugural fund in 2021. By setting such a high target, Kraken Ventures demonstrates its commitment to backing entrepreneurs and supporting them from their initial funding all the way to their IPO.
General partner Brandon Gath confirmed the fundraising efforts, emphasizing the firm’s dedication to its foundational principles. Kraken Ventures has an extensive background in early-stage investments, particularly in sectors such as blockchain, fintech, and advanced technology.
Gath believes that smaller funds are more beneficial for both entrepreneurs and investors. According to him, smaller funds enable more direct involvement with startups, and data consistently indicates that smaller funds yield better results than larger ones.
While Kraken Ventures operates autonomously and relies on external capital, it maintains a strong connection with Kraken. This fundraising initiative takes place in a crypto venture capital scene that has experienced reduced investment activity and a cautious market outlook.
With its second fund, Kraken Ventures aims to back similar startups as it did with its first fund, maintaining a consistent investment strategy. The firm has previously invested in companies like Blockdaemon, Kiln, Anchorage, and LayerN.
Gath highlights the firm’s commitment to its partners, mentioning that a significant portion of the fund is set aside for subsequent investments. This approach distinguishes Kraken Ventures from many strategic investors who don’t allocate a specific capital pool for this purpose, further reflecting its dedication to nurturing long-term relationships with founders.
In the broader context, the cryptocurrency market has seen significant volatility recently, leading to a price collapse in various digital assets, including Ethereum. However, Kraken Ventures remains optimistic about the future of the industry, positioning itself to support promising startups in the evolving landscape.
By adhering to its investment principles and leveraging its extensive expertise, Kraken Ventures aims to navigate the challenging investment climate and secure the funds necessary to make a meaningful impact on the crypto venture capital scene.
In conclusion, Kraken Ventures is pursuing an ambitious fundraising goal of $100 million for its second venture fund, aiming to surpass the amount raised for its inaugural fund. The firm’s commitment to its foundational principles and its dedication to backing entrepreneurs in sectors such as blockchain and fintech set it apart in a challenging investment environment. With strong ties to Kraken and a focus on long-term relationships with founders, Kraken Ventures remains optimistic about the future of the cryptocurrency market and its potential to support innovative startups.
