Pantera Capital, a cryptocurrency hedge fund has managed to garner over $125 million for its third cryptocurrency venture fund. The said fund will invest in companies working in the crypto industry for quite a while, instead of focusing on startups.
As per the information provided by Coindesk, Pantera Capital could only manage to secure over $25 million more since last August 2018. AS the fund commented to CNBC that they have raised over $100 million. Paul Veradittikit, a partner of the hedge fund blames this to the bear market stating that fundraising has become quite difficult for everyone in this industry.
Veradittikit further elaborated that Pantera Capital’s initial funds come from high net-worth individuals, family offices, and others who could move their money rapidly. The many meeting that the Pantera group has been taking with institutional investors such as endowments and pension funds has made Veradittikit quite optimistic. He recently stated:
It’s a great time to be investing. I think we have an opportunity here to be investing in companies with good valuations and great teams and that will be around a long time
The newly gained funds will be aimed to be invested in a “later stage rounds to support the more mature companies” in the industry. Pantera’s partner added that this approach will allow the firm to participate more with the growing companies, wherein they are also eyeing for the board seats.
The fund will goals at investing between $3 to $8 million for equity stakes of as much as 15% in follow-on funding, and between $1 and $3 million for equity reaching 10% to 20% at the seed stage. The first two funds of Pantera shall l invest in up to 44 companies, and the third one is set to support somewhere between 30 to 50 firms.
The hedge fund has previously invested in Bakkt, an intercontinental exchange’s venture into the cryptocurrency space.
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