Crypto-focused venture capital firm Lemniscap has announced a $70 million fund to support startups in the nascent web3 ecosystem.
According to Lemniscap, the new fund will be anchored by Accolade Partners, a fund of funds focused on early-stage VC. Accolade also specializes in growth equity and blockchain fund investments.
Lemniscap plans to use the $70 million fund to back early-stage Web3 founders, according to a press release published on Aug. 28.
Areas of focus across the blockchain ecosystem will include zero-knowledge infrastructure, decentralized physical infrastructure, the Bitcoin (BTC) ecosystem, and phygital. DePIN and ZK are increasingly key ecosystems in the market.
Ethereum (ETH) founder Vitalik Buterin shared his latest thoughts on ZK, noting that one “fascinating initial use case” for this technology are airdrops.
You might also like: Web3 identity firm zkMe raises $4m in seed funding
Financial firepower
Founded in 2017, Lemniscap has invested in more than 130 projects, including top protocols in the web3 space. The portfolio consists of Avalanche, The Graph, EigenLayer, Puffer, StepN, and Axelar among other projects.
According to Lemniscap founder and managing partner Roderik van der Graaf, the company is eyeing further investments in the industry. The fund represents “significant financial firepower” that will be allocated to support the “next generation of ambitious industry pioneers,” van der Graaf noted.
VC funding growing
The crypto venture capital space boosts some huge players and funds, including Paradigm, Pantera Capital, and a16z Crypto. VC investments across the crypto industry have continued to expand after the dip seen following the FTX collapse.
In the second quarter of 2024, total venture capital funding increased to $2.7 billion.
Story Protocol’s $80 million raise and Chaos Labs’ $55 million are some of the top VC funding rounds in the past month.
You might also like: Top VC funds are betting big on RNDR, QNT, and FTM
