March 4, 2024

Multicoin Capital Announces $430M Crypto Venture Fund

Multicoin Capital Announces $430M Crypto Venture Fund

Cryptocurrency investment company Multicoin Capital announced the creation of a third venture fund in the amount of$430 million

The firm plans to use the structure to support projects that have the potential to «change mass consumer markets».

The company intends to focus the new fund on investing in solutions that “incentivize people to do verifiable work that creates real infrastructure.”

As examples of such projects, Multicoin Capital cited the Helium decentralized wireless network and the Hivemapper blockchain mapping service.

The latter encourages users to providecar recorders to create navigation maps. The Solana blockchain-based application raised $18M in April in a round led by Multicoin.

Another direction for investment of the new fundThe company called it the so-called DataDAO. These are decentralized entities that also use the concept of "proof of physical work" but are focused primarily on data.

Multicoin believes that there are manyfragmented data that, if combined, can be «more valuable than the sum of the parts». However, consolidation is not possible due to confidentiality or because «aggregators are not subject to user control».

The investment firm believes that these problems can be solved with the help of cryptocurrencies, which can provide strong incentives.

As another direction for investments of the new fund, the company is considering content monetization projects through online platforms using digital currencies, NFTs and social tokens.

Recall that in 2021, Multicoin launched the Venture Fund II fund with assets of $100 million.

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