Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Fortis Digital Ventures’ new crypto investment fund will focus on companies involved in Web 3.0 that aim to solve real-world problems with better user experiences.
On Tuesday, May 17, blockchain investment firm Fortis Digital announced raising $100 million for a new crypto investment fund. This fundraising comes just at a time when the broader crypto market has corrected 30% eroding more than $800 billion worth of investors’ wealth.
As per the press release, the new fund will focus on altcoins thereby trying to bridge the gap between traditional and decentralized finance (DeFi). Besides, the fund also requires a minimum net worth of $2.5 million to invest.
Fortis Digital Ventures said that Bitcoin certainly remains a solid investment. However, the company believes “it lacks the significant growth potential other more cutting edge altcoins can provide”.
Fortis Digital Ventures is a subsidiary of the Fortis Financial Group which manages over 4250 million in assets under management. Former hedge fund veterans and engineers – Mike Boroughs and Chris Capriccio – shall be running the new fund.
The company also added that the fund will make blockchain investing easier via asset allocation, risk management, and position sizing in crypto. Speaking to TechCrunch, Mike Boroughs, co-founder and managing partner of Fortis Digital Ventures said:
“By building an investment fund focused on blockchain opportunities, we get to spend our time doing due diligence on teams and tech in web3, which gives us insight into what is missing in the market. We want to ensure people we work with have access to this space, because the vehicles to invest in it through the traditional routes, like brokerage accounts, are severely lacking”.
Boroughs believes that due to the extremely volatile nature of crypto, traditional investors don’t have “the stomach or skill set” to invest for the long term.
Capitalizing on the Web 3.0
Boroughs also commented that the current market conditions are extremely bearish, however, Fortis shall be taking a careful stand.
“The overall marketplace is likely to see a retraction in the easy money that was flowing to fund even questionable ideas and projects,” he said. “While a short-term headwind, we view this as a long-term positive, as it means projects will need to stand on their individual merits and not just use the terms ‘crypto,’ ‘blockchain’ or ‘web3’ in their marketing collateral.”
The new crypto fund from Fortis will focus on Web 3.0 companies. It will focus on companies solving real-world issues and building better user experiences. “There is a massive need in web3 for an upgrade in user experience, and we believe the best opportunities will be found at the intersection of great tech and amazing user experience in order to get wide mass adoption,” he said.