Pantera to shut Blockchain Fund quickly after elevating $1.3B

Crypto hedge fund big Pantera Capital is ready to shut a blockchain fund subsequent month that’s backed by round $1.3 billion price of capital.

The Pantera Blockchain Fund was introduced in Might final 12 months, with plans to boost $600 million to put money into early-stage tokens, enterprise fairness, Web3 companies and tokens with robust liquidity. It has since surpassed that focus on considerably, with the agency revealing final month that the fund had topped $1 billion.

The most recent $1.3 billion determine was famous throughout an April 12 investor convention name concerning the corporate’s new $200 million Pantera Choose Fund that may again “development stage” crypto companies which can be able to generate income, versus companies in early funding levels that being sought out by way of the Blockchain Fund.

Whereas a particular cut-off date for the fund wasn’t detailed, Pantera Capital CEO Dan Morehead advised it may very well be in early Might:

“We’re wrapping up the Blockchain Fund, I feel it is gonna be about $1.3 billion and over the subsequent three or 4 weeks, and as a few of the massive establishments which have very detailed due diligence processes wrap up, we will likely be accomplished with that discovered.”

Shifting ahead, Morehead additionally famous that the corporate will then shift its focus to closing the Blockchain Fund II 2023, which is able to “basically be the identical” as the previous variation of the fund and look to acquire additional offers within the “early-stage non-public token area, and new offers within the early enterprise area.”

“We’ll come again with a bigger and extra diversified and doubtless longer funding interval growth-stage fund, in say 2024,” Morehead added.

The Pantera Choose Fund can also be anticipated to shut in early Might with round $200 million price of capital. The agency acknowledged that the fund will likely be used to assist and scale firms which can be already open for enterprise:

“The Fund is predicted to put money into about 10 firms over the subsequent 18 months or so. We’ll primarily give attention to extra mature, revenue-generating firms than our typical Seed and Sequence A enterprise investments.”

Pantera acknowledged that the fund will put money into companies throughout a number of crypto sectors equivalent to blockchain infrastructure, nonfungible token (NFT) platforms, Web3 gaming, the Metaverse, exchanges and decentralized finance (DeFi).

Associated: Hedge fund report says Bitcoin value is ‘at a comparatively cheap place’

Within the agency’s April 5 publication, the Pantera CEO additionally acknowledged that the funds will likely be “smaller, extra focused, and subsequently extra concentrated than a typical development fund” as he emphasised his bullishness on having a number of offers already in place:

“For the primary time in our 9 years, now we have three very compelling growth-stage offers locked in all on the identical time. That catalyzed us to supply a particular fund to assist Restricted Companions acquire publicity to those growth-stage offers plus seven to 9 extra we are going to put money into over the subsequent 12 months.”

We at the moment are -56% beneath the 11-year exponential development development. The markets have not often been so low-cost relative to the development.

Crypto is undervalued in my view.

Extra ideas right here: https://t.co/JKVGi8BHwR pic.twitter.com/95F32y6RPc

— Dan Morehead (@dan_pantera) April 6, 2022

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