Blockchain Investment Firm Pantera Capital On Track To Raise $175M USD

Investing, News | February 25, 2019 By:

Blockchain investment firm Pantera Capital has secured $125 million for its third cryptocurrency venture fund.

Pantera, one of the largest venture capital firms that focuses on cryptocurrency and blockchain companies, announced in August 2018 that it was looking to raise up to $175 million for its third venture fund. At the time, the firm said that $100 million had already been raised, which means the fund has only raised $25 million since August.

“We’re in a bear market and fundraising has slowed for the entire industry, whether you’re an entrepreneur or a fund,” Pantera partner Paul Veradittikit said in a statement. “Pantera’s initial fundraising had come from high net-worth individuals, family offices and others that could money move quickly.”

Veradittikit said that the firm is optimistic about achieving the $175 million target, adding that they are “taking a lot of meetings” with institutional investors, such as endowments and pension funds.

The fund, which is expected to be finalized next month, will reportedly invest in later stage rounds to support more mature companies, unlike the previous startup-focused funds. The firm intends to reserve half of the capital in the fund for subsequent investments in the amount of $3 million to $8 million for equity stakes up to 15 percent. At the seed stage, investments will be from $1 million to $3 million with stakes of 10-20 percent. The firm is trageting six key ares including custody, commercial exchanges, asset management, institutional tools, infrastructure, and marketplaces.

“It’s a great time to be investing,” Veradittikit said. “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.”

The new fund’s first investment was in Bakkt, a cryptocurrency trading platform that is backed by Starbucks, Intercontinental Exchange, Microsoft, BCG and others.