It is very likely that Kraken Ventures will support many projects rather than making a few large-sized investments.
Kraken Ventures, the investment arm of one of the world’s leading crypto exchanges, is set to raise $100 million as its second fund. This comes barely two years after its first raise of $65 million back in December 2021.
According to the investment firm, the new fund it proposes would be targeted at early-stage founders. However, it will not be a one-time investment, says Brandon Gath, managing partner for Kraken Ventures. While the fund must have been dispensed to a business at the startup stage, Kraken would continue to offer support to the business through its journey. Gath wrote:
“Kraken Ventures’ (KV) next fund will double down on our existing thesis and continue to support founders through their full journey from initial capital to IPO.”
Kraken Ventures to Invest in Numerous Projects
According to Gath, Kraken has been involved in “hundreds of early-stage investments”. But its next fund is still a major deal considering that it is a massive upgrade to its previous fund. More so, the venture market for blockchain and crypto-based projects has been somewhat on a general decline.
Nonetheless, Kraken Ventures will be seeking to support as many startups as possible with the fund. Per Gath, Kraken Ventures already operates on the belief that “smaller funds best serve entrepreneurs”. And also added that there is overwhelming data evidence that shows that, truly, “small funds outperform large funds”. Therefore, it is very likely that Kraken support many projects with the fund rather than making a few large-sized investments.
So far, Kraken Ventures has reportedly funded no less than 32 companies, with a major percentage of the investments being Series A funding.
It might however be worth mentioning that Kraken’s investments are not limited to blockchain/crypto-based projects alone. According to its website, it invests in both fintech and crypto-focused businesses. And one of its fintech investments was recently recorded when Kraken Ventures helped fintech startup Rightfoot to raise $15 million.