Nexo To Launch $150M Web3 Investment Fund

key takeaways

Nexo’s investment team has already backed BCB Group, BlockFills, The TIE and 1inch
Through a partnership with hedge fund Three Arrows Capital, Nexo announced an NFT-backed lending service in December

Crypto platform Nexo has launched a $150 million in-house Web3 investment fund, Blockworks has learned.

The company’s venture capital investment arm, Nexo Ventures, plans to deploy capital into sectors including blockchain-based gaming, decentralized finance (DeFi) and NFTs.

“It went from a ‘side hustle’ of the corporate finance team last summer to a full-on strategic part of the business by January,” Troy Gravitt, Nexo’s head of communications, told Blockworks.

Tatiana Metodieva, the venture arm’s head of corporate finance and investments, said the fund will “drive the continued adoption of digital assets and the expansion of the Web3 ecosystem.”

“Also, our investment value proposition differs from most traditional investment funds,” Metodieva, a chartered financial analyst, said. “We’re native to and have a deep understanding of the digital asset industry and technology. We prioritize strategic investments and aim to integrate innovative solutions into Nexo’s product ecosystem and across our global market footprint.“

Leading up to the fund’s launch, the venture unit invested in 1inch, BCB Group, BlockFills, Bware Labs, Interlay, Mizar, Qredo, Rain, Texture Capital, The TIE and Yield Protocol.

Near-term deal flow for the fund, a source familiar with the matter said, will “easily double the number and size of its recent investments.”

In December, Nexo rolled out its NFT-backed lending desk with Singapore digital asset hedge fund Three Arrows Capital. The service allows clients to use NFTs (non-fungible tokens), such as CryptoPunks and Bored Apes, as collateral for loans.

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