When Spice VC launched its Fund II in May this year, the firm said it would kick off a roadshow in Dubai to court potential backers.
Spice VC is expecting to have the first close of its Fund II in the fourth quarter of the year. Spice VC closed its first fund in 2018 and rolled out the second in May 2022. According to the firm’s founder Tal Elyashiv, Spice VC Fund II aims at a $250 million target in its first close. Notably, the target figure is 5X over what the venture capital firm recorded at the close of its first fund- Spice VC I, in 2018.
The capital market company announced earlier this month that it sold part of its holdings in two companies. The companies, Blockdaemon and Securitize, are two of its most successful companies. The firm conducted the transaction to settle a payout involving over 400 long-term investors- limited partners. These investors were to receive their second payout in 2022. The CEO revealed that the VC firm was making its second distribution in 2022, while additional payouts should be expected next year. In a statement, he expressed his excitement with the achievement, noting that it gives the team a level of satisfaction. Elyashiv added that the firm is proud to be able to pay returns to investors who believed in Spice VC.
“It gives our team at Spice incredible satisfaction to achieve these kinds of successful returns for our investors who believed in our mission and vision from the very beginning. We look forward to adding significantly to those returns as we continue to make strategic moves to benefit our investors.”
Per the second payout this year, the CEO said that fund had paid back 82% of the investors’ initial investment.
Spice VC First Fund vs Fund II
When Spice VC launched its Fund II in May this year, the firm said it would kick off a roadshow in Dubai to court potential backers. The firm noted that the fund would focus on the blockchain. Spice VC is after blockchain as the burgeoning technology spreads across diverse industries, including gaming, healthcare, and more. Explaining the concept behind Spice Fund II, Elyashiv stated:
“The focus of [Spice VC Fund II] is the same. We invest in companies that are building significant pieces of the blockchain ecosystem, and companies that are building infrastructure. Companies that are building on distributed ledger technology to significantly change industries.”
However, he said the “breadth” is a lot bigger. Hence, the expectation is that Spice VC Fund II will be more diverse than Spice I.
Furthermore, the executive explained that the second Fund Spice VC is about to unveil a more traditional VC structure with a tokenized portion. And the size of the fund determines a lot for the firm. While the first fund targeted family offices and certain individuals, Spice VC Fund II is more. The fund is aiming at seeking the interest of institutional investors.