Venture Capital Interest In Crypto Continues To Skyrocket Despite Global Uncertainty

Bain Capital Ventures, one of the world&39s leading venture capital companies with over $5 billion in AUM, recently announced the opening of a new $560 million cryptocurrency fund. The fund will be used to invest in everything from cryptocurrency businesses to DAOs in areas such as Layer-1 blockchains and storage. The company anticipates that the fund shall be used in the next few years and will invest in around 30 enterprises.

Similarly, Sequoia Capital intends to invest up to $600 million in crypto startups via a new fund. With all the interest surrounding cryptocurrencies and the recent executive order signed by President Joe Biden himself, now could indeed be the ideal time to invest in crypto.

Bain Capital

The Bain Capital fund was closed in November 2021, having already invested more than $100 million in various undisclosed projects. Bain Capital intends to be a lot more active than usual through the initiative in order to meet the rising demands of emerging crypto businesses.

Once the fund&39s capital has been invested, Bain Ventures may thus also consider opening other crypto-based funds. The broad consensus is that this is a 10 to 20 year opportunity, and the team is hence constructing a platform that they believe can support additional funds over time.

Sequoia Capital

Sequoia Capital has announced the formation of a $500 million to $600 million fund focused on cryptocurrency tokens and other digital assets. This is the first time the 50 year old business has launched a fund focused on a certain industry.

Alfred Lin, a partner at Sequoia Capital, revealed that the company will invest the aforementioned sum in cryptocurrency tokens and startups via the new dedicated fund to help further develop this burgeoning sector.

What does it all mean?

The present trend follows a boom in venture capital interest in cryptocurrencies and digital assets during last year. Despite the fact that cryptocurrency prices remain extremely unpredictable in 2022 (and the current state of the world isn&39t exactly helping things either), venture capital companies have nonetheless continued to make major investments in the immensely popular sector.

In related news, Polygon recently secured $450 million via a funding round spearheaded by several top venture capital companies in the blockchain sector. Needless to say, this kind of interest is not going away anytime soon.