Crypto venture capital firm C1 Fund is eyeing new deals in Australia as it looks to expand its presence in the region.
C1 Fund, established by Coinbase backers and lawyers, is said to be actively seeking undervalued assets in the Australian market, aiming to capitalize on the recent market downturn, according to a report from The Australian Financial Review.
The North America-based investment firm has reportedly reached out to several Australian venture firms, offering to buy private holdings from investors at between 50-80% discount on their last valuation.
A pitch deck seen by The Australian Financial Review demonstrated C1 Fund’s interest in backing crypto firms with a minimum valuation of $300 million Series C funding round and later.
According to C1 Fund’s pitch deck,
“Due to current market conditions in the public and private markets, hyperinflation and rising interest rates we believe the digital assets market offers very attractive valuations in the secondary market.”
The report says the investment firm wanted to back companies, writing cheques between $20 million and $50 million.
While the whole list of companies under C1 Fund’s radar is unclear, the report says Hong Kong-based web3 firm Animoca Brands is one of C1’s targets. Blockchain forensic firm Chainalysis is also said to be on the investment list.
Both Animoca Brands and Chainalysis experienced significant declines in their valuations in 2023 due to the broader downturn in the cryptocurrency market, which caused investors to become more cautious about investing in high-growth technology companies.
Animoca Brands reportedly saw its valuation fall by more than 75% from its most recent private valuation. Blockchain analytics firm Chainalysis, which held an $8.6 billion valuation during its Series F funding round in 2022, is also said to be trading at a 70% discount.
Dr. Najam Kidwai, Co-Founder of C1 Fund, told news media in a commentary that the firm “has not met” with companies “as of this time.”
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