Exciting news from the world of venture capital and crypto! Blossom Capital, a prominent London-based VC firm, is significantly ramping up its investments in the cryptocurrency sector. Originally known for its broad investment approach since 2017, Blossom is now signaling a major commitment to the digital asset space.
This morning, Blossom Capital announced its impressive third fund, totaling a massive $432 million! This substantial capital injection is earmarked for promising European startups seeking Series A funding. While Blossom’s investment scope remains diverse, covering areas like consumer tech, cybersecurity, developer tools, SaaS, finance, and marketplaces, there’s a clear shift towards crypto.
Hold on to your hats, crypto enthusiasts – a significant portion, **one-third of this $432 million fund**, is dedicated to businesses powered by crypto technologies.
Ophelia Brown, the Managing Partner at Blossom Capital, succinctly put it:
“We do hold tokens. We will have exposure to the core protocols. We are going to do a lot more of what we have already done.”
This statement hints at a deeper dive into the crypto ecosystem than previously known. But what exactly does this mean for the future of DeFi and Web3?
Blossom’s Crypto Footprint: More Than Meets the Eye?
While Blossom Capital might not be immediately recognized as a crypto-heavy investor, their portfolio tells a different story. The most prominent example is their backing of MoonPay. Remember MoonPay? The crypto payments giant that secured a staggering $555 million in funding last November, valuing the company at $3.4 billion? Yes, that’s a Blossom Capital success story!
However, beyond MoonPay, the extent of Blossom’s crypto involvement has been somewhat under wraps.
But here’s the intriguing part:
Brown reveals that Blossom’s previous $185 million second fund has been quietly and strategically investing in the crypto space, including:
- Tokens: Investing in the native tokens of promising crypto projects.
- NFTs: Venturing into the world of Non-Fungible Tokens, recognizing their potential beyond digital art.
These investments were made discreetly, not publicly announced like traditional equity investments. This suggests a calculated and deliberate approach to understanding and navigating the complexities of the Web3 landscape.
Brown elaborates on their NFT holdings:
“We have some NFTs — we won’t disclose what, but we have NFTs. We believe in the upside of some of these communities very much.”
This reveals Blossom’s belief in the community-driven aspect of Web3 and the potential value locked within these digital ecosystems.
Doubling Down on Crypto Expertise
To further solidify their commitment to the crypto space, Blossom Capital is taking a significant step: they are actively recruiting a **new crypto-focused partner**. This dedicated role will spearhead their Web3 investment strategy and guide their growing portfolio in this dynamic sector. This move underscores their seriousness about becoming a major player in crypto venture capital.
Brown herself is deeply involved in Blossom’s fintech investments, demonstrating her understanding of disruptive financial technologies. Her track record speaks volumes. She played a crucial role in Blossom’s early investment in Checkout.com back in May 2019.
Consider this growth trajectory:
Company | Valuation (May 2019) | Valuation (Current) |
---|---|---|
Checkout.com | $2 Billion | $40 Billion |
Checkout.com’s valuation has skyrocketed from $2 billion to an astounding $40 billion! This phenomenal growth showcases Blossom’s ability to identify and invest in companies with massive potential. They are clearly hoping to replicate this success in the burgeoning crypto market.
What Does This Mean for the Crypto Industry?
Blossom Capital’s increased focus on crypto and Web3 is a significant indicator of the maturing crypto market. Here’s why this news matters:
- Increased Institutional Investment: A traditional VC firm like Blossom allocating a substantial portion of a new fund to crypto signals growing institutional confidence in the long-term viability of digital assets.
- Fueling Web3 Innovation: This capital injection will provide crucial funding for European crypto startups, fostering innovation in DeFi, NFTs, metaverse technologies, and more.
- Mainstream Adoption: As established VC firms embrace crypto, it can lead to greater mainstream acceptance and adoption of blockchain technology.
- Talent Acquisition: Blossom hiring a dedicated crypto partner highlights the increasing demand for specialized expertise in the crypto space, creating new opportunities for professionals in this field.
Blossom Capital’s move is a strong endorsement for the future of crypto and Web3. Their strategic shift and significant financial commitment are poised to fuel the next wave of innovation in the decentralized digital landscape. Keep an eye on Blossom Capital – they are clearly betting big on crypto!
Related Reads:
– Ex-SEC Chair, Jay Clayton Believes Cryptocurrency Industry Is For Long Haul
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