A cryptocurrency hedge fund, Pantera Capital has recently successfully acquired over $125 million for its third cryptocurrency venture fund, which will allow it to invest in companies that have been in the crypto industry for quite a while, instead of having to simply focus on startups.
According to information provided by Coindesk, Pantera Capital had only managed to secure over $25 million during August of the previous, as it had commented to CNBC that at the time they already raised over $100 million. A partner of the hedge fund, Paul Veradittikit, justified that fundraising has become quite difficult for everyone in this industry, mostly due to the bear market.
Pantera Capital’s initial funds come from high net-worth individuals and family offices, as well as others that could move their money rapidly. Pantera has been stated to be “taking a lot of meeting” with institutional investors such as endowments and pension funds, which has made Veradittikit quite optimistic.
He recently stated that,
It’s a great time to be investing. I think we have an opportunity here to be investing in companies with good valuations and great teams and that will be around a long time
Pantera Capital’s newly gained funds will be completely focused on investing during a “later stage rounds to support the more mature companies” in the industry. According to Pantera’s partner, this approach will allow the firm to take a more active role in growing companies, and it’s even eyeballing board seats.
Pantera Capital’s new fund is now set to focus on investing in “later stage rounds to support the more mature companies” in the space. This approach, Pantera’s partner stated, is set to allow the firm to take an active role in growing companies, and it’s even eyeing board seats.
Respectively, the fund shall set a goal of investing between $3 to $8 million for equity stakes of as much as 15% in follow-on funding, and between $1 and $3 million for equity reaching 10% to 20% at the seed stage.
Pantera Capital’s first two funds shall invest in up to 44 companies, and the third one is set to support somewhere between 30 to 50 firms. The hedge fund has previously invested in Bakkt, an intercontinental exchange.