A group of cryptocurrency venture investors has launched a $20 million fund to invest in undervalued Web3 projects and companies focused on blockchain games and digital collectibles.

Alpha Protocol Ventures (APV) CEO and founder Vagelis Diamantis told Cointelegraph in an email interview that the firm will seek to invest in various projects in the Web3 ecosystem. Gaming and collectibles will be a priority area of ​​focus, while decentralized finance, layer 1 and layer 2 protocols will also fall within the fund’s capital allocation, he said.

“We will also explore projects that try to address real-world issues such as supply chains, data protection and infrastructure.”

APV has received funding from Diamantis, Ethernity CEO Nick Rose, Web3 investment firm Morningstar Ventures and a group of Web3 angel investors.

Diamantis, the former chief financial officer of Ethernity, added that APV has identified some potential investment targets, while also adding support for “undervalued projects” launched as “buy-and-hold funds”, including Polygon, etc. Polkastarter, Axie Infinity, and Ethernity.

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Diamantis also added that the prolonged bear market still presents an opportunity for investors to back projects in their infancy that are developing innovative solutions based on blockchain technology.

“The crypto ecosystem has gone through many cycles since its inception. This is a brand new asset class and we think it will only grow exponentially.”

APV will double down on investments in blockchain companies and Web3 applications, targeting undervalued companies and undiscovered blockchain technologies, Diamantis said.

Through 2023, Web3 projects and platforms will continue to attract significant investment from venture capital firms and fund managers.

Animoca Brands announces $30M investment in Web3 neobank Hi in July 2023, founder Yat Siu outlines innovative products such as a customizable non-fungible token-based crypto debit card in an exclusive interview with Cointelegraph as a Web3 Potential draw card for enthusiasts.

Meanwhile, another venture capital firm, Vessel Capital, announced a $55 million fund that will also support Web3 infrastructure and applications. That figure was eclipsed by cryptocurrency exchange Bitget, which reportedly launched a $100 million fund for Web3 and blockchain projects in Asia.

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