The fund will focus on growth-stage startups in three main areas like infrastructure, blockchain and financial services and smaller categories such as Web3 gaming, NFTs, and the Metaverse.
Digital asset-focused venture capital firm 1RoundTable Partners (1RT) is looking to raise up to $800 million for a new venture fund catering to growth-stage startups. According to a TechCrunch report, the VC firm plans to raise a minimum of $200 million by the time the fund closes in March.
In an interview with TechCrunch+, Dan Tapiero, CEO, CIO and Managing Partner of 10T Holdings and 1RoundTable Partners expressed optimism about the state of the crypto industry despite the hurdles it has met over the past couple of years.
There has been a marked decline in investment in crypto firms despite the relative upturn in crypto prices over the past year. Further, data from Crunchbase reveals that in the fourth quarter of 2024, Web3 startups raised only $1.1 billion in 221 deals – a 21% drop in investment from Q3 and a 65% drop from Q4 of 2022, when Web3 startups raised $3.1 billion.
Tapiero’s sentiments are worth noting considering the size of his firm’s investments in the crypto industry. For instance, 10T has over $1.2 billion in assets under management and crypto industry leaders like Gemini, Kraken, Yuga Labs and Animoca Brands on its portfolio.
“The deals right now are incredible,” he said. “It’s the single best time to invest in companies […] the prices in the secondary are 50% to 80% discounted from previous rounds – and that’s for companies that are doing well, too.”
For its upcoming fund, 1RT is taking the long-term, less volatile route. The fund will focus on growth-stage startups in three main areas – infrastructure, blockchain and financial services – and smaller categories such as Web3 gaming, NFTs, and the Metaverse. The VC firm intends to make about 10 to 15 investments in a bid to gain an additional 5 to 10 board seats across its portfolio companies. According to Tapiero, the firm will not only focus on investing in companies but will also “potentially bring [more developed companies] public.”
“It’s never been the case that the landscape has been this empty, so we’ll raise as much as we can. We’re seeing some strong interest from really large players like large family offices, sovereign entities or national entities that want exposure to the space and are essentially new,” he said, revealing that 1RT has already put “a small bit of money” into some investments.