CoinFund on the Lookout for Promising Web3 Companies After $300M Raise

This latest venture fund aims to invest in companies after the seed stage

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • “Our goal with this fund is to assemble a portfolio with a mix,” Pakman said
  • Layer-1s, DeFi, NFTs, gaming and Web3 infrastructures are just a handful of promising investment areas, according to Pakman

Cryptocurrency investment firm CoinFund has raised $300 million for its latest fund: a venture capital-style vehicle that plans to focus on early-stage Web3-oriented startups.

Though CoinFund has been investing in seed-stage Web3 startups since 2015, Managing Partner David Pakman told Blockworks the latest fund aims to back companies thereafter. 

“Seed funding makes bets on teams and a thesis, and the venture fund is making investments in companies that are showing some traction — where there’s evidence that things are working and we think there may be big outcomes,” Pakman said. “Our strategy is to invest in both some of our existing portfolio companies, and also new companies that we missed, or we never had the chance to meet the team. Our goal with this fund is to assemble a portfolio with a mix.”

As a digital assets generalist, CoinFund doesn’t have its sights focused on a specific area of Web3, but Pakman said the team has identified promising sectors.

“Layer-1s, DeFi [decentralized finance], NFTs [non-fungible tokens], gaming, Web3 infrastructures — such as stablecoins and payments, asset management and exchanges and on-ramp crypto wallets — are all showing promise today,” he said.

As the ecosystem matures, Pakman believes new areas to invest in will emerge. Rather than building centralized computing architectures, developers could focus on building networks and protocols where users and developers can share ownership of the infrastructure — and its growing cadre of tangential applications. 

“The job of this venture fund would be to determine the teams that want to build big things that are intersecting with adoption,” Pakman said. 

Even so, Pakman said being thematically accurate as an investor is not enough. 

“You have to be right about the timing of adoption,” he said. “If you bet on cloud computing and AI [artificial intelligence] in 1998, you would not have been successful, but if you bet on cloud computing in 2008, you would be very successful.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings

article-image

This week’s biggest funding round saw Jump Trading, JPMorgan contribute to the round

article-image

Plus, a layer-1 for intellectual property is launching and Farcaster users peaked

article-image

Crypto still hasn’t shaken one of its most garish primordial tails — funny stories about fraud

article-image

Plus, publicly traded crypto companies had a pretty eventful news week

article-image

Committee members directed more questions to Christy Goldsmith Romero, who could soon be leading one of the more troubled federal agencies