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VCs remain the major source through which institutional investors access crypto.
Venture capital (VC) firm Re7 Capital has tapped web3 advisory and crypto infrastructure firm Republic Crypto to launch a $100 million fund for liquid tokens. The fund, which is dubbed RxR Opportunities Fund, is one of the early initiatives of the 2022 strategic joint venture between the two firms. According to The Block, the fund will allow eligible investors to have access to a limited number of hand-picked crypto tokens, with a focus on those tokens with medium-sized market caps.
In a statement regarding the fund, Re7 Capital founder, Evgeny Gokhberg admits that the fund will aim at the smaller crypto names. However, he also insists that it will not involve anything speculative such as meme coins. And while Gokhberg confirms that the fund is already seeing commitments from all over, he did not disclose the exact amount that has been realized so far.
RxR Opportunities Fund has a one-year lock-up with liquidity after which it may then be unlocked every quarter. According to Gokhberg, about 15% of it would be focused on private deals such as over-the-counter (OTC) transactions.
Re7 Capital’s new fund represents a third option for its clients. The Cayman Islands-based firm first launched a market-neutral DeFi yield fund in 2021. In February, it also launched an Ether-focused fund. Therefore, the RxR fund adds a new option for its clients.
Re7 Capital Signals the Growth of Venture Capital
Meanwhile, one can not overemphasize the impressive growth of the venture capital sector in recent times. Historically, VCs remain the major source through which institutional investors access crypto, albeit on a large scale. But recently, it appears there are more liquid opportunities for them to partake in the market. Investors now stake, tap into yield opportunities and have access to liquid tokens unlike before. The last part is exactly what Re7 and Republic hope to achieve with their new fund.
Re7 comes into the partnership with deep knowledge and experience managing a successful crypto hedge fund.