Bain Capital Ventures Launches Crypto Focused Fund

Rancakmedia.com – $560 million Bain Capital Crypto as ecosystem booms “The fund is slightly oversubscribed, but in typical Bain Capital spirit, we started with a small fund size and plan to grow dramatically from there,” Alex Evans, a partner at Bain Capital told Blockworks.

$ 560 million worth of crypto fund has been launched by asset management Bain Capital, the business announced to Blockworks on Tuesday.

The business, which has about $155 billion in assets under management, launched an early-stage crypto-native fund and its new venture arm Bain Capital Crypto to acquire a promising stake in Web3 innovators and builders, partner Alex Evans told Blockworks.

Infrastructure projects invested in cryptocurrencies and DeFi will get most of the capital. Blockworks was informed by Stefan Cohen, managing partner at Bain Capital Crypto, that the team will put together a portfolio of 30 new companies or protocols to invest across the fund.

Bain Capital Crypto Has About $155 Billion Managed Assets

The fund will be managed jointly by Evans and Cohen. For now, the team will concentrate on putting this capital into the crypto ecosystem but may open up the fund in the future, Evans added.

"The fund was slightly oversubscribed, but in the typical spirit of Bain Capital, we started with a small fund size and plan to build dramatically from there," Evans added.

As a result of seven years of investment history crypto company, Cohen wrote in a blog post, the fund was founded.

Bain has invested in 14 DeFi (decentralized finance) and crypto infrastructure startups so far, including B2B infrastructure platform Zero Hash, asset management ParaFi Capital, and crypto lender BlockFi. Initial capital usually ranges from $1 million to $100 million, depending on the stage of business development.

It is also a major investment in Compound Finance, an algorithmic, autonomous interest rate protocol for developers, and has the third-largest voting weight for protocol governance.

“Those crypto investments will stay with their capital venture fund, we are not changing ownership or anything like that,” Cohen added. Investing in early stage companies is a priority, but the fund also has the option to purchase more liquid tokens.

Cohen said the team expects crypto to be integrated and embedded into existing consumer and enterprise software stacks over the next decade and plans to invest in companies that will bridge the protocol into established software ecosystems.

We expect the native crypto-economy and the services surrounding it to thrive as well, Cohen added. “We're starting to see some of that with DeFi [decentralized independent organizations] that are established and have a treasury, that leverages capital in the crypto economy.

Consequently, we believe that as a result of the snowball effect, the crypto ecosystem will grow and develop in new directions.

While many companies have been investing in crypto for years, the heat has increased in the last 12 months as the use and growth of crypto has increased internationally.

Last month, 50-year-old investment firm Sequoia Capital launched a new $500 million to $600 million sub-fund focused on liquid tokens and digital assets.

Separately, Andreessen Horowitz's conventional venture capital firm, a16z, has delved deep into the digital asset market and plans to create another crypto fund of around $4.5 billion, more than four times the size of the previous crypto fund's $2.2 billion.

"The truth is, we feel that generalist venture funds cannot tackle this market successfully," Cohen added. To effectively assist founders, we believe that the strategy we take here should be adopted by generalist venture firms. "We are pleased that generalist venture firms will bring capital to this market."

Conclusion

Bain Capital Ventures Launches Crypto-focused Fund worth $560 million during Ecosystem Boom. Bain Capital has around $155 billion in assets under management. The team will assemble a portfolio of 30 new companies or protocols to invest across the fund.

For now, the team will concentrate on putting this capital into the crypto ecosystem. Sequoia Capital has launched a new sub-fund worth $500 million to $600 million focused on liquid tokens and digital assets.

Andreessen Horowitz plans to create another crypto fund of around $4.5 billion, more than four times the previous crypto fund's $2.2 billion.

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