Venture capital firm Vessel Capital announced a $55 million fund to invest in Web3 infrastructure and applications, TechCrunch reported. report. According to the founders, their goal is not to scale, but to help early-stage startup cryptocurrency founders launch and grow their projects.
“Cryptocurrency has become more global, so it is no longer the same circles and groups that you saw in 2018-2020, we hope to help more people,” Mirza Uddin, one of the co-founders (Mirza Uddin) said. In addition to Vessel, Uddin serves as Director of Business Development for Injective Labs.
Other co-founders include Eric Chen, CEO of Injective Protocol, and Anthony Anzalone, co-founder of Burnt (formerly Burnt Finance), a Web3 company building XION, a layer 1 blockchain for consumer adoption.
1/ I am pleased to announce the public launch @VesselVCthe operator leads a Web3 fund for early-stage startups.
with @ericinjective And Anthony, our goal is to build a new venture capital model that really aligns us with the success of the founders.https://t.co/3g8RnFgyTD
— Mirza (@TheMirza_) August 24, 2023
The Fund’s resources will be deployed over a five-year period. Uddin believes the team’s experience as startup founders has given Vessel a better understanding of what entrepreneurs need. “Oftentimes,[venture capitalists]don’t have expertise in the areas they’re investing in,” he noted, adding, “There are enough VCs in the world, but what’s really missing is actual guidance.” and advice.” He went on:
“Most of the time, you get a nice check and a nice logo on the website, but other than that, the VCs don’t really help much beyond an introduction now and then.”
Vessel’s debut comes amid a downturn in cryptocurrency venture capital (VC). Data from the Cointelegraph Research venture capital database shows that the number of investment deals fell 29.73% in June, with 62 deals raising just $779.32 million. Venture capital giant Sequoia Capital recently reduced the size of its cryptocurrency fund from $585 million to $200 million, citing a liquidity crunch and a shift to smaller cryptocurrency companies.
However, Web3 infrastructure remains a popular investment target. Earlier this week, Binance Labs, Binance’s venture arm, announced a strategic investment in Delphinus Lab’s zero-knowledge WebAssembly virtual machine, which supports zero-knowledge proof computation.
“Web3 infrastructure and applications will fundamentally redefine the structure of the new Internet economy, enabling a more innovative, decentralized and capital efficient society.” wrote Udin is on LinkedIn.
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