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Multicoin Capital is interested in exploring and tapping from the potential opportunities of the Decentralized Finance industry.
Leading investment firm Multicoin Capital which is focused on making investing in cryptocurrency and blockchain companies-related companies, is aiming to raise $250 million for its third crypto-focused venture fund. This is coming on the back of the last crypto fund (second crypto venture fund) of the investment firm which was held in the last six months and was able to raise $100 million. According to available information, the said $250 million fund is expected to be raised completely by Austin Texas-based company towards the end of 2021.
Notably, this proposed Multicoin Capital fundraise is the latest among several large funds created by the investment firm. The initiative makes it join the bandwagon of firms attempting to bolster their crypto funds in the year.
This year, firms such as Andreessen Horowitz have raised funds for their crypto venture. Back in June, Horowitz raised $2.2 billion towards its 3rd crypto fund, while the crypto venture capital firm, Paradigm, attempted to end its $1.5 billion funds for startup investments.
A post made on October 6 by Multicoin co-founder Tushar Jain identified the firm’s area of interest in crypto. According to his post, the firm is interested in exploring and tapping from the potential opportunities of the burgeoning crypto niche, known as Decentralized finance.
“Today’s DeFi markets are largely limited to variable-rate lending and borrowing. The two largest borrow/lend protocols, Compound and Aave, both support variable rates. While these products work well for users aiming to earn a decent yield, they don’t work for corporations or neo-banks who need predictability—both on the lending and borrowing side. As DeFi grows to serve more use cases, the ability to lock in an interest rate will be a key enabling technology,” the blog post reads in part.
Earlier in the year, CZ-led crypto exchange Binance participated in an investment round of the firm. Not only that, firms such as Ribbit Capital, Union Square Ventures, Venture Capitalist Marc Andreessen and former PayPal Chief Operating Officer David Sacks have all contributed to the Multicoin fund.
It is worth adding that Multicoin Capital could be investing in crypto companies that others might miss in the future. Available information shows that the firm recently led the funding round of Strips Finance, a decentralized finance project.
Going by the recent statement of Multicoin Capital Managing Partner Tushar Jain, It appears that the firm has an extraordinary belief about blockchain. According to Jain blockchain is “the best social good in the world.”