As crypto venture funds try to weather the storm caused by the collapse of crypto exchange FTX, No Limit Holdings is embracing the chaos.
In a recent announcement, Gin Chao, founding partner of CVP NoLimit Holdings, stated, “We liked valuation trends in August, so we like them even better now.” “Now is the time to step up.”
Chao is a crypto industry veteran who previously led strategy for Binance, a leading cryptocurrency exchange. He has now partnered with private equity firm ClearVue Partners to invest in the blockchain space through No Limit Holdings, a new venture.
Four months ago, No Limit Holdings launched its first fund, CVP NoLimit Fund I. According to previous reports, the fund hopes to raise a total of $100 million. Chao declined to comment on how much money the fund has raised thus far.
The funds raised will be used to fund seed stage deals and strategic rounds, with check sizes ranging from $250,000 to $3 million.
“Because of our small fund size and large GP commitment, we are highly incentivized to deliver returns on the fund rather than relying on management fees,” Chao stated in a press release. “In essence, we are underwriting our own capital to risk-adjusted returns.”
The fund has already invested in companies like Mysten Labs, Connext, Hogwarts Labs, Binance.US, and IQ Protocol.
“We invest in businesses we understand and teams that are capable of executing,” Chao explained.
The new fund launches in the midst of the crypto bear market, following the collapse of industry darling FTX, which was previously valued at $32 billion, and widespread repercussions from its demise that have shaken the market.
Despite a sharp drop in investor sentiment, Chao remains upbeat, intending to invest in multi-chain projects to reduce risk and increase user inclusion, according to the announcement. He also stated that the fund’s goal is to “minimize exposure” to centralized entities and that it is self-custodying its crypto assets using multi-signature solutions.
ClearVue Partners is a Chinese private equity firm that was founded in 2012 and has over $1 billion in assets under management. According to a press release, the No Limit name is a nod to a 2010 poker game where the principals of ClearVue Partners and No Limit Holdings began their crypto journey.
“No Limit Holdings launched its first fund specifically to invest in this crypto winter, and our timing couldn’t be better,” said Chao.