Pantera Capital’s Blockchain Fund Has $1 Billion in Commitments

Pantera Capital's Blockchain Fund Has $1 Billion in Commitments

  • Pantera partner calls gaming “a huge sector for years to come” in the crypto space
  • The fund’s venture capital deals range from $1 million to approximately $40 million, typically in seed, Series A or Series B funding rounds

Pantera Capital has $1 billion in commitments for its blockchain fund and will close the vehicle to new investors in April.

The blockchain-focused asset manager announced in May that it was looking to raise $600 million for the fund. It is available only to qualified buyers and has a minimum investment of $1 million.

“We are going to invest twice as much in the market as expected,” Pantera CEO Dan Morehead said on an investor call Tuesday. “All of our peers also have strong fundraising cycles, so all that money will be put to good use and drive the market higher.”

Pantera will not make new investments in its three previous launches venture capital funds, as future offers will feed into the new supply. Around 40% of the Blockchain Fund’s assets will be allocated to venture capital. Approximately 30% will go to seed tokens and another 30% will be allocated to liquid tokens.

“We’re really going to dive into the consumer [use cases] much more, the intersection of traditional finance and DeFi and also things around the continued global institutionalization of the space,” Pantera partner Paul Veradittakit said on the call.

The investment size for the fund’s venture capital deals ranges from $1 million to approximately $40 million, typically in seed, Series A, or Series B funding rounds. Pantera can take between 10% and 20% in companies.

Token early-stage investments, which executives described as resembling venture capital deals, range from $1 million to $15 million, also in early funding rounds.

“Our previous venture capital funds all started returning capital in three or four years, and then a lot after five years,” Morehead said. “I think this fund will be very similar to that.”

What does the fund hold?

To date, the Pantera Blockchain Fund has invested in 44 early-stage token projects and venture capital deals. The company has led or co-led 26 transactions and more will be announced in the coming months.

Executives highlighted the company’s investment in Aurora, a bridge designed to provide Ethereum compatibility and scalability for smart contracts on the NEAR blockchain that raised $12 million in October, as well as the exchange South African-based cryptocurrency company VALR which raised $50 million last week.

Pantera also takes a look at what executives have noted among the hottest crypto segments: on-chain gaming, NFTs, and the metaverse. It invested in Web3 gaming infrastructure platform GuildFi’s $6 million seed funding round in November.

“The gaming industry is going to be a huge industry for years to come in this space,” Veradittakit noted. “It’s very convenient, it’s pretty easy for people to use and easier to understand than things like DeFi.”

Pantera is also looking to invest in NFT (non-fungible token) marketplaces, platforms and developer tools to help build in the growing space.

“Where we see this market evolving with NFTs is not just the representation of digital art, but also the representation of video, music… and of course also video game assets,” said said Veradittakit.

Where is the market going?

Morehead reiterated previous comments that the crypto asset class is “the most asymmetric trade” he has ever seen.

Asked about market cycles, the CEO said crypto investors selling before filing their taxes had partly driven recent price declines.

Morehead previously predicted bitcoin would hit $115,000 by August 2021. The asset’s price was around $42,200 as of 10:30 a.m. ET Wednesday, according to data compiled by Blockworks — up 9% from compared to 24 hours ago. The executive noted that he expects prices to be “much higher” a year from now.

“There’s kind of a knee-jerk reaction to say it’s a bubble,” Morehead said. “You can’t have a bubble that hardly anyone has. Ninety percent of large institutions do not yet have a real, direct position in blockchain. »

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  • Ben Strack

    Ben Strack is a Denver-based journalist who covers macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben by email at [email protected]