Polychain capital, a cryptocurrency investment company, has set up the second phase fund focusing on venture capital at the beginning of this year. The target financing amount is US $200 million, which is US $25 million higher than the first phase venture fund.
According to the investor slide obtained by coindesk, the second phase venture fund was established in early 2020 and will only accept investment of no less than $1 million in the next three years. Like polychain capital’s phase I venture fund, phase II will help cryptocurrency start-ups complete the initial round of pre seed, seed and a-round financing.
The first venture fund raised US $175 million, and the investment amount of each investor is usually between us $500000 and US $5 million. According to polychain’s investor slide, the fund was founded in the first quarter of 2018 and had invested most of its money by the end of last year. Among them, 40% of the funds are invested in start-ups to improve the existing blockchain infrastructure, and 60% of the funds are invested in start-ups to explore new concepts in the industry.
The second fund was registered in December, according to SEC documents. The total amount raised by polychain capital for the second phase fund is not shown on the slide. Polychain capital declined to comment on the progress and details of the financing due to investor restrictions.
According to the slide, the second phase venture fund will give priority to the blockchain network with strong privacy, engineering and flexibility. At present, it has invested in the cloud platform dfinity and blockchain interoperability projects cosmos and Polkadot.
Polychain said it had invested in cryptocurrency exchanges and custodians through the first phase of the fund, laying a foundation in the cryptocurrency industry. Based on this strategy, polychain invested in San Francisco’s cryptocurrency exchange and technology Unicorn company coinbase. This is the company’s most successful investment case.
At the same time, the company’s ace venture capital projects also include many emerging decentralized financial entities – Digital financial instruments and intermediary brokers with self-regulation ability, which can effectively avoid manual supervision, and usually settle in the form of cryptocurrency. So far, polychain has invested in the decentralized financial agreement makerdao, margin trading agreement dydx, blockchain bank Dharma and loan agreement compound, etc.
So far, none of polychain capital’s public venture capital projects has been listed or acquired. Traditionally, funds can realize their shares through the above two ways, which can bring considerable returns to fund investors.
It is reported that investors or LP (limited partner) in polychain capital have invested in companies in polychain’s portfolio together with Andreessen Horowitz (a16z), Sequoia Capital, founders fund and Union Square ventures.
According to SEC filings, polychain capital’s total assets decreased from $967.8 million in August 2018 to $595.1 million in March 2019. The total assets include cryptocurrency, the equity of the invested company and the unused investment funds, and the amount is calculated based on the market value on the date of submission of the disclosure form.
In the new investor slide, polychain capital claims that its cryptocurrency asset fund, a hedge fund founded in 2016 to trade short-term and long-term positions in digital assets, manages about $550 million. The slide, which appears to have been produced in or after October 2019, mentions that the hedge fund is also accepting $1 million in investments.
Polychain capital is an early fund in cryptocurrency venture capital, founded in San Francisco. Its founder Olaf Carlson wee was the first employee and former head of risk management at coinbase. Robin witoff, chief technology officer of polychain, and Sam Rosenblum and Aurora harshner, general partners of polychain, have also worked for coinbase.
In addition to Carlson vitov, the two executive partners, President Joe Eagan and chief operating officer and chief financial officer Matt Perona, all have backgrounds in the traditional financial industry. Perona served as CFO of criterion capital from 2012 to 2018. Egan was previously chief operating officer of tiger legatus, a consumer equity hedge fund.
Responsible editor; zl