The Blockchain Founders Fund Raises $75 Million to Promote Widespread Web3 Usage

Polygon, Ripple, Octava, NEO Global Capital, Appworks, Sebastien Borget of The Sandbox, GSR, LD Capital, Metavest Capital, and others participated in the fundraising round.

A $75 million fundraising round from organizations including Polygon, Ripple, Octava, NEO Global Capital, Appworks, GSR, LD Capital, Metavest Capital, and others, including Sebastien Borget, chief operating officer of The Sandbox, has been closed, according to Blockchain Founders Fund, a venture capital fund that supports the adoption of Web3 and blockchain technology.

The fund will concentrate on assisting high-potential early-stage pre-seed and seed businesses that promote the wide use of Web3 and blockchain technologies, according to the statement.

Around 100 firms have previously received funding from the fund, including Altered State Machine, Magna, Splinterlands, GRID, and Krayon.

Aly Madhavji, managing partner of Blockchain Founders Fund, revealed in an interview with Cointelegraph that the venture capital fund may be distributed among more than 200 businesses over the course of the following year.

When discussing the criteria and methods by which Web3 entrepreneurs can apply for funding from the Blockchain Founders Fund, Madhavji revealed that the fund will concentrate on early-stage Web3 businesses with solid teams and a track record of carrying out their vision. The projects must also provide goods or services that address genuine market requirements and provide obvious avenues for long-term monetization or income generation. Also, the initiatives must have a convincing business strategy that indicates a thorough knowledge of the target market and the industry landscape.

The Blockchain Founders Fund is assisting in addressing some of the major issues in the crypto venture capitalist landscape, according to Madhavji. He listed a few of them: “There is a high level of competition for deals in the space, regulatory uncertainty, as well as a limited track record of successful projects. We concentrate on investing in high-quality firms with sound foundations and convincing signs of growth in order to address these issues.

In order to ensure that only well-rounded teams are picked for funding, Madhavji further revealed to Cointelegraph that the Blockchain Founders Fund employs a team-centric strategy when reviewing investments. He added: “We leverage our industry connections, including leading institutions and investors in the space, to help our portfolio companies succeed. We take the necessary precautions to navigate regulatory uncertainty by staying abreast of emerging trends in blockchain governance as they continue to evolve over time.”

Despite a reported drop in venture capital expenditure by investors in Q4 2022, Cointelegraph reported on Feb. 24 that investors are still willing to fund blockchain-based technologies, applications, and startups.

According to the research, venture capital funding is allegedly shifting in favor of “non-volatile innovations,” such as cross-chain bridges, payments and remittances, financing, decentralized autonomous organizations, asset management, and digital identity management.