Golden Gate Ventures, the Singapore-based venture capital firm, has decided to significantly boost the cryptocurrency and blockchain space. The company is launching a LuneX Ventures fund which will invest $10 mln in relevant startups, writes Marketsinsider.
Big business has been eyeing the cryptomarket and blockchain technologies for a while now. Thus, Andreessen and Horowitz has recently launched a $300 mln crypto fund; Coinbase has secured $20 bln from an unknown VC; Blackrock is considering entering the cryptomarket. Now it is Southeast Asia’s turn to get on board and LuneX Ventures fund will be its first step in the crypto/blockchain direction.
According to Kenrick Drijoningen, who is set to become the leader of the LuneX Ventures blockchain is a “foundational technology, on par with or possibly exceeding the internet in disruptive potential.” He added: “Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.”
LuneX plans to invest globally in companies that are creating services for the new crypto ecosystem. LuneX believes that its advantage is that it will provide blockchain entrepreneurs both with funds and expertise. Traditional VCs do not have the same advantages.
“Traditional investors currently struggle to access this new asset class: there are legal, custodian, banking, tax and other operating obstacles to overcome. LuneX Ventures has been built from the ground up to address all these. We have gone the extra mile to make sure the fund is fully compliant while providing easy access to accredited investors. Our mandate allows us to invest in tokens of promising startups. For us, it’s important that our interests are aligned with those of founders. In the end, this is how we all benefit,” noted Drijoningen.
While LuneX Ventures is GGS’ first specialized project, the company is not a novice when it comes to carrying out ICOs. So far its portfolio companies have raised over $35 mln through them.
As to the location, Singapore headquarters was chosen both because it is considered to be “a burgeoning base of tech talent for crypto/blockchain project.” Its favorable governmental policy also attracts high-profile investors. Thus, the Monetary Authority of Singapore promised not to regulate pure utility tokens.
The company’s first employee is Tushar Aggarwal. He is the author of the popular blockchain podcast “Decrypt Asia,” which aims to “decode and demystify the Asian Blockchain ecosystem.” In his Linkedin profile, he described the company as “we are an early stage Venture Capital firm taking both equity stakes in Blockchain companies and investing in Cryptoassets.”