Golden Gate Ventures has announced that it plans to launch a $10 million cryptocurrency and blockchain startup investment fund, according to TechCrunch and other media outlets. The Singapore company’s new fund will be called LuneX Ventures and will focus investments on “early-stage” cryptocurrency exchanges, security firms, and similar digital currency and blockchain-related projects.
Golden Gate Ventures is a venture capital company that has previously been focused on mobile applications, software, e-commerce, payments, and other technology sectors in Southeast Asia. According to information provided on the company’s website, the firm has provided funding to more than thirty early-stage companies in seven countries over the last seven years.
The fund will reportedly be operated by Golden Gate founding partner Kenrick Drijkoningen, who defended the launch timing in an interview with TechCrunch:
“Despite the fact that public markets are down, the amount of talent that’s moving into this space is exciting. There are young entrepreneurs who are passionate about this space and want to build an ecosystem.”
Drijkoningen said that most existing cryptocurrency funds are hedge funds and suggested that the LuneX fund will rely on a more long-term investment strategy. He also offered some insight into how his company plans to use the fund's capital:
Drijkoningen explained the capital will be divided equally for token sales, purchasing existing tokens and equity-based investments in crypto projects. That means getting into private sales and pre-sales for ICOs, and seeing what tokens already on the market have long-term return potential.
On the equity investment side, Drijkoningen is looking for what he calls “infrastructure” businesses, such as solutions for token custody, banking and more. The fund’s capital is being raised in fiat, but it is considering allowing Bitcoin, Ether and other tokens.