Cryptocurrency Fund Launched By Singapore’s Golden Gate Venturesbr>
Singapore-based venture capital firm Golden Gate Ventures is launching a $10 million fund focused on blockchain and cryptocurrency investments.
Golden Gate Ventures is an early-stage venture capital firm investing across Southeast Asia. The firm invests in startups that leverage technology and the Internet to scale rapidly and disrupt existing industries – from e-commerce to payments, marketplaces to content portals, mobile apps to B2B, Internet of Things (IoT) to software as a service (SaaS) platforms. Since 2011, the Golden Gate has invested in over 30 companies across more than 7 countries in Asia, including Indonesia, Malaysia, Thailand and the Philippines.
The new fund, dubbed LuneX Ventures, will be a partnership between Golden Gate and its former head of growth, Kenrick Drijkoningen, who will take on the role of founding partner. The fund will be investing in early-stage crypto and blockchain companies worldwide that are “building out services to grow the new crypto ecosystem.” Qualities favored include scalable infrastructure and interoperability, along with practical solutions to issues such as custody and security, and institutional services that will drive the next wave of adoption.
“We view blockchain as a foundational technology, on a par with or possibly exceeding the Internet in disruptive potential,” Drijkoningen said. “Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.”
Since the adoption curve is still in the early-stage, Drijkoningen said the fund will take a long-term approach to investments.
“Traditional investors currently struggle to access this new asset class: there are legal, custodian, banking, tax and other operating obstacles to overcome,” said Drijkoningen. “LuneX Ventures has been been built from the ground up to address all these. We have gone the extra mile to make sure the fund is fully compliant while providing easy access to accredited investors. Our mandate allows us to invest in tokens of promising startups. For us, it’s important that our interests are aligned with those of founders. In the end this is how we all benefit.”
Over the past year, a huge number of crypto-focused funds have emerged. In 2017, 130 new funds were created as the crypto craze reached its peak. According to a study conducted by California-based firm Crypto Fund Research, 61 funds have been launched in the first half of 2018, 29 of which were launched in the US. The study found that just under one-third of the new funds are of the venture capital variety, while the rest are hedge funds, adding that most of them are “still quite small.”