Singaporean venture capital firm Golden Gate Ventures is launching what it bills as Southeast Asia’s ‘first dedicated VC cryptocurrency fund’ with $10 million in investment capital.
Dubbed LuneX Ventures, the fund will see a ‘laser-like focus’ on the cryptocurrency and blockchain space by investing in early-stage startups including cryptocurrency exchanges, the VC firm said on Friday. The fund will be led by Golden Gate’s former head of growth Kenrick Drijoningen, who will assume the role of its founding partner.
The launch of the fund is also timed for the current climate in the crypto sector where cryptocurrencies are steadily going mainstream in spite of the ongoing bear market in 2018, according to Drijkoningen.
“We view blockchain as a foundational technology, on a par with or possibly exceeding the Internet in disruptive potential. Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.”
Further, the fund will aim to “invest exclusively in high-growth blockchain companies and cryptocurrency assets” including startups that can “bring the industry to the next level” globally, the executive was quoted as stating by TechinAsia.
Beyond cryptocurrency exchanges, the fund will also target startups devising practical solutions to custody and security requirements in the crypto sector. Firms looking to introduce crypto assets and blockchain technology to “institutional services” will also be favored according to Drijkoningen.
The fund is expected to close up to $10 million within the end of 2018 and has already lined up a number of investments, Drijkoningen told e27.
“We have a strong pipeline of five to 10 investments ready to go and made our first commitment to Singapore-based Sparrow Exchange [a peer-to-peer crypto options trading platform] already.”
Before its crypto-exclusive spin-off fund, Golden Gate Ventures has notably backed Thai-based Ethereum blockchain startup Omise in the latter’s development of a decentralized payments platform powered by OMG, an ERC20 cryptocurrency token.