Crypto VC Fund Backed by Billionaire Investors is Raising $60 Million

Nick Tomaino-led 1confirmation, a San Francisco-based crypto venture capital firm, is reportedly raising $60 million in a new round.

Although it remains uncertain whether the round is close to being finalized, The Wall Street Journal reported that a source familiar with the deal has said the newly obtained capital will be used to fund early-stage projects.

The report follows a high profile investment of 1confirmation in Veil, a company that is building an interface on top of Augur, an Ethereum-based prediction platform often described as one of the most complex decentralized applications (dApps) in the market.

Why Big Deals are Emerging in a Year-Long Bear Market

13 months in a bear market, the crypto market has recently seen many multi-million dollar deals in the U.S. market and other major digital asset sectors in the likes of Japan, South Korea, and Southeast Asia.

Bakkt, a digital asset exchange operated by ICE, the parent company of the New York Stock Exchange, has completed its first acquisition on January 14. Kelly Loeffler, the CEO of Bakkt, announced that the company acquired certain assets of an independent futures commission merchant Rosenthal Collins Group (RCG).

In the previous month, ErisX, a regulated cryptocurrency futures market based in the U.S., secured a $27.5 million funding round from the venture capital arms of Fidelity and Nasdaq.

As principal advisor Sheri Kaiserman said speaking to Bloomberg, companies and investment firms are starting to acquire infrastructure projects that are building the foundations of both the cryptocurrency industry and decentralized systems.

The long-lasting bear market of crypto has led to a substantial decline in the valuation of many blockchain projects, especially those that conducted initial coin offerings (ICOs) throughout 2017.

The value of the majority of tokens in the global market remains down by more than 80 to 90 percent against the U.S. dollar.

Kaiserman stated:

We felt like the best way to make money is to buy the infrastructure companies — the picks and shovels — that are helping build the foundation. They are coming down in valuation, which is the best part of the crypto winter for us.

It is possible that potential investors in the U.S. market that are interested in the cryptocurrency sector are exploring venture capital firms such as 1confirmation that are exploring projects to invest in following a major correction.

Since late 2017, Nick Tomaino, a former Coinbase employee and the founder of 1confirmation, has emphasized that the core vision of the firm is to invest in early-stage tokens and projects.

“I’m most excited by entrepreneurs building new projects, and there’s no fund right now that’s solely focused on investing in both tokens and projects at the earliest stage of project development,” he said in an interview with Forbes.

Focus on Long-Term Projects

Most investments in crypto, whether it is in companies, early-stage projects, or crypto assets such as Bitcoin and Ethereum, are done with a long-term strategy.

Last month, when the cryptocurrency market experienced a steep sell-off after a positive month in November, Tomaino reassured its founders that as long as they are building products for the long-term, they are less vulnerable to losing relevance.

Reaffirming 1confirmation’s focus on early-stage companies working on long-term projects, Tomaino said:

“Public sentiment has turned negative, which can pose a challenge as you manage and build your teams and raise money from investors. But if you’re focused on building useful products for the long-term, it’s actually a good thing because there is less competition and noise and more opportunity to build something defensible.”

Photo by Alex Shutin on Unsplash

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Joseph Y

Joseph Yung is a financial analyst and investor who has worked in the cryptocurrency and technology sector since 2013. He's worked with leading publications within the cryptocurrency space, providing unique insights, interviews, market analysis, and technology coverage. You can contact Joseph at