Kraken Ventures' $100M Fund Targets Next Generation Of Crypto Startups

Kraken Ventures, the investment arm of the cryptocurrency exchange Kraken, is in the process of gathering funds for its second venture, despite the current challenging investment environment.

The goal is to secure $100 million for this new fund, surpassing the $65 million that Kraken Ventures collected for its inaugural fund in 2021, The Block reported, quoting insiders.

Brandon Gath, general partner of Kraken Ventures, verified the fundraising efforts, emphasizing the firm's commitment to its foundational principles and its dedication to backing entrepreneurs "from their initial funding all the way to their IPO."

Gath highlighted the team's extensive background in early-stage investments, spanning sectors such as blockchain, fintech and advanced technology.

“Smaller funds are more beneficial for both entrepreneurs and investors," he said. "Entrepreneurs receive more direct involvement, and data consistently indicates that smaller funds yield better results than larger ones.”

Although Kraken Ventures operates autonomously and relies on external capital, it maintains a robust connection with Kraken, as Gath pointed out.

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The backdrop for this fundraising initiative is a crypto venture capital scene that's seen better days, marked by reduced investment activity and a cautious market outlook.

Kraken Ventures aims to back similar startups with its second fund, mirroring its first fund's strategy.

Past investments have been made in companies such as Blockdaemon, Kiln, Anchorage and LayerN.

Gath emphasized the firm's commitment to its partners: “A significant chunk of our fund is set aside for subsequent investments, reflecting our belief in nurturing long-term relationships with our founders.

"This approach sets us apart from many strategic investors who don't allocate a specific capital pool for this purpose.”

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