Jacquelyn Melinek

<div id="highlights-block_622bc409e82cd" class="highlights">
 <ul>
 <li>The week started off strong with Immutable’s $200 million financing round, valuing the company at $2.5 billion on Monday</li>
 <li>Bain Capital Ventures, which has about $155 billion in assets under management, launched a $560 million crypto-focused venture arm</li>
 </ul>
 
</div>



The crypto funding environment continued to heat up this week as massive mega rounds and funds launched in the space.&nbsp;



Over $1.82 billion in fresh capital entered the space, up 36% from <a href="https://cms.blockworks.co/funding-roundup-1-34b-invested-in-crypto-companies-and-funds-this-week/" target="_blank" rel="noreferrer noopener">$1.34 billion </a>from last week. The total money invested this week came from about 30 deals and funds, according to PitchBook data.



The week started off strong with Immutable’s <a href="https://cms.blockworks.co/immutable-notches-2-5b-valuation-after-series-c-funding/" target="_blank" rel="noreferrer noopener">$200 million</a> financing round on Monday, which valued the company at $2.5 billion. The round was led by Temasek and included other investors like Animoca Brands, Tencent, ParaFi Capital, Princeville Capital, Arrington Capital, Mirae Asset and Liberty Global.



On Tuesday, Bain Capital Ventures, which has about $155 billion in assets under management, launched a <a href="https://cms.blockworks.co/bain-capital-ventures-launches-560m-crypto-focused-fund-as-ecosystem-booms/" target="_blank" rel="noreferrer noopener">$560 million</a> crypto-focused venture arm. The funds will be deployed into about 30 companies or protocols focused on DeFi and crypto infrastructure, Stefan Cohen, managing partner at Bain Capital Crypto, told Blockworks.



Over the next 10 years, the Bain Capital Crypto team anticipates crypto getting integrated and embedded into traditional consumer and business software stacks and plans to invest in companies that will bridge protocols into established software ecosystems, Cohen said on Tuesday.



Separately, Singapore-based platform Cake DeFi has launched its corporate venture arm with <a href="https://cms.blockworks.co/singapore-based-cake-defi-launches-100m-in-capital-for-venture-arm/" target="_blank" rel="noreferrer noopener">$100 million</a> in capital, the firm told Blockworks on Wednesday. Cake DeFi Ventures (CDV) will focus its investments across Web3, the metaverse, the NFT space, gaming, esports and fintech spaces that will benefit its core business, it said.



It was also leaked that Ethereum layer-2 developer StarkWare is raising <a href="https://cms.blockworks.co/ethereum-scaling-startup-reportedly-triples-valuation-in-four-months/" target="_blank" rel="noreferrer noopener">at least $100 million</a>, which would increase its valuation to $6 billion, Israeli newspaper Calacalist <a href="https://www.calcalistech.com/ctechnews/article/rjm00s7wbq" target="_blank" rel="noreferrer noopener">reported</a>. StarkWare declined to comment Thursday. However, a company source, who spoke to Blockworks under condition of anonymity, said they couldn’t confirm it, “but it sounds entirely plausible.”



The new valuation is triple its previous $2 billion valuation from just four months ago, when the company raised $50 million in a Series C round led by Sequoia Capital.



Other notable capital raises this week:&nbsp;



<ul><li>Okcoin announces “Bitcoin Odyssey” collective with plans to invest <a href="https://www.prnewswire.com/news-releases/okcoin-announces-165m-bitcoin-odyssey-collective-partners-with-top-venture-firms-to-supercharge-bitcoin-adoption-301500256.html" target="_blank" rel="noreferrer noopener">$165 million</a> over the next 12 months into Bitcoin-focused DeFi apps&nbsp;</li><li>Scaling and privacy solution for Web3 applications, Espresso Systems, debuted to the public with a <a href="https://cms.blockworks.co/espresso-systems-launches-to-public-amid-a-32m-raise/" target="_blank" rel="noreferrer noopener">$32 million</a> funding round</li><li>Stablecoin payment builder Kado closed a <a href="https://cms.blockworks.co/payment-builder-kado-closes-first-capital-raise-to-expand-access-to-stablecoins/" target="_blank" rel="noreferrer noopener">$5.4 million</a> fundraise&nbsp;</li><li>Swim Protocol raised <a href="https://www.globenewswire.com/news-release/2022/03/09/2400100/0/en/Swim-Protocol-Raises-4M-for-Innovative-Cross-Chain-Infrastructure.html" target="_blank" rel="noreferrer noopener">$4 million</a> in seed funding by Pantera Capital with participation from FTX, Alameda Research, Coinbase Ventures and others</li></ul>



Check back next week for more funding news.



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Funding Roundup: More Than $1.8 Billion Pooled Into Crypto Companies and Funds This Week

Morgan Chittum

<div id="highlights-block_622623f1e5b17" class="highlights">
 <ul>
 <li>Staff will go from 170 to 350 full-time employees over the next year, co-founder Robbie Ferguson told Blockworks</li>
 <li>Immutable raised $60 million in Series B funding in September</li>
 </ul>
 
</div>



Immutable, creator of the NFT-focused layer-2 scaling protocol Immutable X, secured $200 million in Series C funding, launching the Sydney-based startup to a $2.5 billion valuation.



Led by Temasek, investors in the financing round include Animoca Brands, Tencent, ParaFi Capital, Princeville Capital, Arrington Capital, Mirae Asset and Liberty Global.



King River Capital, Prosus Ventures, AirTree Ventures, Declaration Partners, Fabric Ventures, Possible Ventures and Alameda Research all raised their existing investments in Immutable.



&#8220;We&#8217;ll be growing from 170 to 350 people over the next year — investing in a global partnerships and gaming advisory team and tripling our product and engineering teams,” Robbie Ferguson, co-founder of Immutable, told Blockworks.



Immutable made headlines in October for creating Immutable X, which powered TikTok’s NFT (non-fungible token) collection. It was billed as the first layer-2 protocol on Ethereum that allowed instant trading and zero gas fees, which often served as a roadblock for minting NFTs.



Earlier this month, Immutable announced a $100 million joint fund with GameStop for blockchain gaming startups.



The company was founded in 2018 by brothers Robbie and James Ferguson.



“In 2017, we saw NFTs come out with CryptoPunks and [my brother and I] said, ‘This is it,’” Robbie said. “This is going to be massive because there is more uniquely ownable stuff in the world than there is currencies. The ability to have digital property rights is going to be the most important thing.”



In its early years, Immutable was known for creating “<a href="https://godsunchained.com/" target="_blank" rel="noreferrer noopener">Gods Unchained</a>,” which Robbie described as “the first multiplayer game with NFTs on Ethereum, [all] completely on-chain.”



The company has since expanded, launching tokens such as IMX in September, which sold out on CoinList in under an hour and raised over $12.5 million.



That same month, Immutable <a href="https://cms.blockworks.co/layer-2-solution-immutable-closes-60m-series-b-round/" target="_blank" rel="noreferrer noopener">announced</a> a $60 million Series B funding round to boost NFT trading. BITKRAFT Ventures and King River Capital co-led the round, with participation from Alameda Research, Galaxy Interactive, VaynerFund and Apex Capital.



Along with the Monday announcement, Immutable announced new C-suite hires such as former Riot Games exec Justin Hulog. The startup also tapped ex-Shutterfly chief marketing officer, John Boris, as its chief growth officer.



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Immutable Notches $2.5B Valuation After Series C Funding

Michael Bodley

<div id="highlights-block_61e71e0f47627" class="highlights">
 <ul>
 <li>The launch is the latest in an increasing number of venture capital funds focused on digital assets</li>
 <li>Pyxis is on track to raise at least $25 million for the launch and plans to institute a cap of $40 million</li>
 </ul>
 
</div>



A former family office executive and a veteran volatility trader are raising capital for a hybrid crypto-focused venture capital fund that would invest in early-stage liquid and illiquid plays, according to three people familiar with the matter.



Stephen Moskowitz and Anthony Merriman are aiming to raise at least $25 million for their Pyxis Capital, with a launch slated for the end of the first quarter or beginning of the second quarter, sources said.&nbsp;



Blockchain-focused investment firm <a href="https://cms.blockworks.co/private-equity-firm-kkr-invests-in-defi-and-blockchain-focused-parafi-capital/" target="_blank" rel="noreferrer noopener">ParaFi Capital</a>, which ran about $1 billion of assets under management at year-end 2021, is backing Pyxis as an anchor investment, the sources said.



The firm has a number of other strategic investors coming in, according to sources, and also plans to make additional hires.&nbsp;



Sources were granted anonymity to discuss sensitive business dealings. Moskowitz and Merriman declined to comment.



The goal is to raise at least $25 million for Pyxis’ flagship vehicle, and indications are the first raise has been oversubscribed. The firm plans to cap capital contributions at $40 million.



Pyxis plans to invest in early-stage tokens, back nascent crypto startups and do a smaller amount of directional, hedge-fund-like trading of liquid cryptocurrencies.



Merriman, Pyxis’ chief investment officer, has Wall Street and crypto experience, having previously worked for firms including AQR Capital, Morgan Stanley and Celsius. He oversaw a crypto portfolio of about $200 million at Celsius.&nbsp;



Moskowitz, the firm’s chief operating officer and president, most recently worked for an undisclosed family office in the New York area, where he built out the firm’s crypto lending business — including closing a $20 million secured loan to crypto miner Bitfarms. He also worked on investing in liquid tokens and vetting crypto funds.



He previously spent time at firms including Morgan Stanley, FocusPoint Private Capital and Champlain Advisors. He’s an investor in crypto businesses including BlockFi and Gemini.&nbsp;



Moskowitz and Merriman first met in 2017, when they kicked around the idea of starting a fund. The two have deep experience in crypto, with the former getting into the space in 2016 and the latter in 2013.



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ParaFi Capital-backed Crypto Venture Capital Firm Prepping Launch, Sources Say

<div id="highlights-block_61e71031b0e14" class="highlights">
 <ul>
 <li>“We have set ourselves the ambitious goals of building an open Web3 and facilitating an open metaverse that expands financial inclusion,” Yat Siu, co-founder and executive chairman of Animoca Brands said in a statement</li>
 <li>The company is an active investor in over 150 NFT and metaverse-related companies, including OpenSea, Dapper Labs, Yield Guild Games, Star Atlas, Axie Infinity, Thetan Arena, and others</li>
 </ul>
 
</div>



The Sandbox parent company Animoca Brands has raised $358,888,888, to build out the open metaverse and enable individual digital ownership, the company <a href="https://www.animocabrands.com/animoca-brands-raises-usd358888888-at-usd5b-valuation-to-grow-the-open-metaverse" target="_blank" rel="noreferrer noopener">announced</a> on Tuesday.&nbsp;



This funding round gives it a pre-money valuation of over $5 billion, the company said. The money will be used to continue funding strategic acquisitions and investments, as well as product development and licenses for intellectual properties.



The round was led by Liberty City Ventures and included other investors like <a href="https://cms.blockworks.co/10t-holdings-plans-to-launch-third-crypto-fund/" target="_blank" rel="noreferrer noopener">10T Holdings</a>, C Ventures, ParaFi Capital, Sequoia China, Stable Asset Management, Soros Fund Management and Winklevoss Capital, among others.



In 2021, Animoca Brands raised $216.28 million to build out the open metaverse by bringing digital property rights to online users through the use of blockchain and NFTs and The Sandbox closed a funding round for <a href="https://cms.blockworks.co/the-sandbox-raises-93m-in-round-led-by-softbank/" target="_blank" rel="noreferrer noopener">$93 million</a> in November 2021, the company said.



“We have set ourselves the ambitious goals of building an open Web3 and facilitating an open metaverse that expands financial inclusion,” Yat Siu, co-founder and executive chairman of Animoca Brands said in a statement.&nbsp;



<blockquote class="wp-block-quote">While there was tremendous growth in this space last year, “we believe we are still at the initial stages of a new Internet revolution, and there are tremendous opportunities ahead of us in 2022 and beyond,” Siu said.&nbsp;</blockquote>



The company is an active investor in over 150 NFT and metaverse-related companies, including OpenSea, <a href="https://cms.blockworks.co/dapper-labs-backer-animoca-scores-85m-to-further-invest-in-the-metaverse/" target="_blank" rel="noreferrer noopener">Dapper Labs</a>, Yield Guild Games, Star Atlas, Axie Infinity, Thetan Arena, and others.&nbsp;



Most recently, Animoca Brands participated in Metaplex Foundation’s <a href="https://cms.blockworks.co/metaplex-foundation-closes-46m-funding-round/" target="_blank" rel="noreferrer noopener">$46 million</a> funding round on Tuesday and separately led an <a href="https://cms.blockworks.co/animoca-brands-led-8m-series-a-for-burnt-finance/" target="_blank" rel="noreferrer noopener">$8 million Series A</a> for Burnt Finance on Monday, a new NFT auction protocol built on Solana’s blockchain, Blockworks previously reported.&nbsp;



“These technologies enable the true digital ownership of users’ virtual assets and data, and make possible various DeFi and GameFi opportunities,” the company wrote. Through elements like play-to-earn, asset interoperability and open frameworks, there can be greater equitability for all participants in the space, Animoca Brands noted.&nbsp;



The precise valuation of Animoca Brands, based on share price and shares on issue prior to the capital raise, is $5.4 billion, or A$7.6B, at current exchange rates. The raise included a subscription price of $3.23, or A$4.50, per share for a total of 111,173,515 new shares.&nbsp;



The company was not available for additional comment requested by Blockworks on Tuesday.



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The Sandbox Parent Animoca Brands Raises $359M to Build Out Open Metaverse

Sam Reynolds

<div id="highlights-block_618e963dd41b6" class="highlights">
 <ul>
 <li>Blockworks has learned that ParaFi is launching a new fund, the ParaFi Growth Fund LP, by mid-December </li>
 <li>ParaFi says that it will forgo the traditional Special Purpose Vehicle route and run a commingled fund because of the competitive deal timelines currently in the industry</li>
 </ul>
 
</div>



ParaFi is in the process of fundraising for its next fund, the ParaFi Growth Fund, and is planning to close the round in mid-December, Blockworks has learned.&nbsp;



Documents seen by Blockworks show that ParaFi is in the process of raising funds for a $200 million closed-end vehicle, and it plans on focusing on investing in up to 30 companies in the blockchain industry, particularly in early-stage venture and mid-to-late stage growth equity. Unlike some of ParaFi’s prior funds, such as the ParaFi Digital Opportunity Fund, this fund would be focused on equity plays instead of token investments.&nbsp;



ParaFi has said that this would be a commingled fund, rather than a special purpose vehicle, citing the “competitive deal timelines”, investor interest, and the scope of the current deal pipeline. It&#8217;s understood that this would be a more efficient means instead of an SPV to establish a fund given the aggressive timelines involved. ParaFi also says that it has lined up the first deals for the new fund and is currently warehousing them, meaning these investments are rolled into prior funds in advance of the new fund’s launch. 



So far the company has launched the Digital Opportunities Fund, Private Opportunities Fund — which has multiple series — and the Digital Credit fund. 



While the size of the fund might seem small, consider that many of the hottest DeFi and blockchain projects have considerably light capital requirements for the revenue they generate. Some of ParaFi’s prior investments include Beta Finance, a DeFi Protocol that allows for “lending, borrowing and shorting of any crypto asset” with one click which raised $5.75 million from investors in October. Another was Spectral, a protocol for programmable creditworthiness, which closed in November. ParaFi participated in this round, which came in at $6.75 million.&nbsp;



Institutional interest in blockchain and crypto continues to grow, with blockchain funding shattering past the $15 billion mark during the first nine months of 2021, with $6.5 billion of that coming during the third quarter of 2021, according to data from <a href="https://www.cbinsights.com/research/report/blockchain-trends-q3-2021/" target="_blank" rel="noreferrer noopener">CB Insights</a>.&nbsp;



In September, Blockworks <a href="https://cms.blockworks.co/private-equity-firm-kkr-invests-in-defi-and-blockchain-focused-parafi-capital/" target="_blank" rel="noreferrer noopener">reported</a> that private equity firm KKR &amp; Co. has invested as a limited partner in ParaFi Capital’s flagship fund. ParaFi’s <a href="https://www.prnewswire.com/news-releases/parafi-capital-the-defi-focused-asset-management-firm-announces-strategic-investment-from-galaxy-digital-301139426.html" target="_blank" rel="noreferrer noopener">other shareholders include</a> Mike Novogratz’s Galaxy Digital.&nbsp;



ParaFi declined to comment on this story.