Alexis Ohanian, who helped start Reddit, has a venture capital firm called Seven Seven Six. They want to raise $177.60 million for a new fund called Kryptós that will focus on cryptocurrencies.
The fund’s marketing materials, which were seen by The Information, said, “Now may be a one-of-a-kind chance to invest in strong founders at a discount.”
Kryptós bought popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) at a discount, using the downturn in the crypto market as a way to get into the industry. “You can buy it. The store’s founder, Katelin Holloway, told The Information that everything is on sale.
When it starts up in October, Kryptós will charge investors a 2.5% management fee and give everyone a 25% share of any profits. If the fund grows to be five times as big as it is now, the payout will go up to 35%.
CrunchBase says that since the firm started in 2020, it has raised more than $750 million in funds from three different funds. Kryptós is the first fund that only invests in cryptocurrencies. Decrypt has tried to talk to Seven Seven Six about Kryptós, but hasn’t heard back yet.
Crypto investments on the rise
Seven Seven Six is another example of how crypto funding hasn’t slowed down because of the market. Multicoin Capital, for example, launched a $450 million crypto fund last month that will focus on projects that build “real-world infrastructure in the blockchain space.”
Sandeep Nailwal, who launched Polygon, and Kenzi Wang, who started Cere Network, also started a crypto founder capital firm called Symbolic Capital. They raised $50 million to support Web3 companies that are on the rise.
What makes this different is that “we [the founders] built blockchain companies from the ground up and are very familiar with the unique challenges that these projects face,” said Nailwal.