provide the list of VC funds in web3

Answered at Oct 09, 2024

Venture capital in the Web3 space has seen explosive growth in recent years, with numerous funds emerging to support blockchain and cryptocurrency startups. Here's a comprehensive list of notable VC funds operating in the Web3 ecosystem:

Top Web3 VC Funds

Lunar3 Capital

Headquartered in Lisbon, Portugal, Lunar3 Capital is the investment arm of Lunar Strategy. They focus on seeding potential unicorns in the crypto and Web3 landscape. With extensive experience in nurturing projects from ideation to launch, Lunar3 Capital has supported ecosystems like Polkadot, ICP, MultiversX, and ROSE, along with over 170 Web3 projects (Lunar Strategy).

Multicoin Capital

Founded in May 2017, Multicoin Capital has established itself as a leading VC firm in the Web3 industry. They are known for their thesis-driven approach and have made significant investments in various blockchain projects (Lunar Strategy).

Union Square Ventures

Based in New York, Union Square Ventures is a thesis-driven VC firm with investments in over 100 companies. While they have a strong track record in traditional tech startups, they've also made impressive forays into the digital currency space, investing in projects like Coinbase, Protocol, and Numerai (Lunar Strategy).

Digital Currency Group

Digital Currency Group is a prominent player in the cryptocurrency investment landscape. They have a diverse portfolio of blockchain and crypto-related companies (Lunar Strategy).

Web3 Capital

Web3 Capital specializes in providing support to startups at all stages of development. They offer both VC and late-stage capital investment, as well as running accelerators. Their Web3 Venture Accelerator program is particularly noteworthy, focusing on blockchain companies and decentralized technologies (Tenity).

Blockchain Founders Fund

Based in Singapore, the Blockchain Founders Fund offers a "venture builder" program that teaches startups how to raise capital, develop their business, content, and product, and find strategic partnerships. While their primary focus is on Asia-based startups, they do consider projects from other regions (Tenity).

Blockchain Founders Group

Despite being based in Germany, the Blockchain Founders Group is open to startups from over 70 countries. They run accelerator programs for 10 to 15 startups per cohort, with 5 to 7 receiving financial support of up to $120,000 each. In addition to funding, startups gain access to a large network of blockchain experts, crypto enthusiasts, lawyers, and founders (Tenity).

Emerging Trends in Web3 VC

The Web3 VC landscape is evolving rapidly, with several key trends shaping the industry:

  1. Focus on Sustainability: There's growing interest in startups related to environmental sustainability and climate change, with investors increasingly prioritizing companies that adhere to strong environmental and social governance (ESG) standards (NCU India).

  2. Diversity and Inclusion: More angel investors are supporting entrepreneurs from marginalized backgrounds, emphasizing equal investment opportunities (NCU India).

  3. Technological Advancements: Machine learning and artificial intelligence are attracting significant investment, with startups in these areas gaining attention for their potential to disrupt established markets (NCU India).

  4. Tokenization: Asset tokenization is opening up innovative investment opportunities by enabling fractional ownership and incorporating programmable features. This trend is expected to gain massive traction in 2024 (Assets of Value).

  5. Web3 Gaming: The gaming industry, with a total addressable market of approximately $250 billion projected to grow to $390 billion over the next five years, is seeing a revival of interest in Web3 integration (Assets of Value).

As the Web3 space continues to mature, these VC funds play a crucial role in fostering innovation and supporting the next generation of blockchain and cryptocurrency startups. The interplay between normative concepts of decentralization and political economic interests is shaping the future of Web3 investments, making it an exciting and dynamic field to watch in the coming years.

Lunar Strategy Tenity NCU India Assets of Value