In web3, venture capital firms play a crucial role in nurturing innovation and driving the adoption of blockchain technologies. While the same multi-billion-dollar funds tend to hog the spotlight during pre-seed and seed stages, an influx of agile crypto-native VCs has emerged in recent years, each bringing fresh perspectives and outside-the-box strategies to the table. These up-and-coming companies do more than write fat checks, too; they actively help to mold the future of DeFi and other blockchain subsectors.
Rather than blindly chasing the next hot trend or eyeing quick exits, most of these firms are focused on building long-term value and supporting talented founders beyond providing mere financial backing. This article looks closely at ten fast-rising investment companies helping power the next wave of fintech innovation.
DWF Labs
DWF Labs is one of the newer firms on this list, having broken onto the scene in 2022. It would be uncharitable to say that it’s a minnow in a sea of monsters, though: the company, which stands for Digital Wave Finance, has been extremely active in helping projects get their tokens listed at the best price, raise funds, and create markets. Helpful in that effort is the fact that DWF also runs a market-making and OTC trading desk, trading spot, and derivatives markets on over 60 top exchanges.
In addition to funding and market-making, the Singapore-based firm provides comprehensive support, including product development, marketing strategy, and regulatory guidance. Among the many projects to receive DWF funding are Conflux, Orbs, Synthetix, Radix, and Fetch.AI, with the company’s total portfolio closing in on 800 projects.
Noir Ventures
Based in Dubai, Noir Ventures is run by an experienced, multidisciplinary team that shares the same passion for revolutionary tech companies, hundreds of which have been lucky enough to receive both financial and creative capital over the years – costs that Noir offsets through share or token equity.
Over the last 12 months, portfolio companies backed by Noir Ventures have raised over $165 million, while 85% of Noir-backed seed companies have successfully raised their next round. Some of the better-known include Nova, Farcana, Hydro, Numbers, Sera and WalletPort.
Outlier Ventures
Outlier Ventures puts its money where its mouth is, having supported well over 300 portfolio projects since its inception ten years ago. Europe’s first dedicated web3 venture fund, this decade-deep London firm, has helped give life to many impactful web3 initiatives across DeFi, NFTs, DAOs, metaverse, gaming, and other verticals.
In addition to making straight-up equity investments, Outlier has its own accelerator program, Base Camp, and token advisory offshoot, Ascent, through which it has helped raise over $350 million in seed funding. Meanwhile, The company’s portfolio is packed with recognizable names, including Biconomy, Brave, Fetch.AI, Ocean Protocol, and Boson Protocol.
3X Capital
An investment and advisory firm focused on seed-stage startups, 3X Capital was formed in 2021 by a team of serial entrepreneurs and portfolio managers, all of whom were highly active in blockchain prior to starting the company.
While it doesn’t write the largest checks of firms on this list(anywhere between $100k and $350k, generally speaking), the Lisbon-based VC is highly active, having made investments in projects as diverse as RentSpace, Venture Launch, Raters and Amsets.
EnigmaFund
A web3 fund and advisory practice that takes pride in rolling its sleeves up and providing more than just capital, EnigmaFund‘s core mandate is to support exceptional entrepreneurs developing critical and engaging web3-powered tools.
Generally, the company looks to invest in startups that are either pre-revenue or early-revenue, with 30% of its fund ring-fenced for investing in direct deals (including vesting OTC tokens and assets), and 70% for investing in companies it accelerates; EquityFund does not invest in equity-only dealflow and has poured capital into ventures like Avalanche, AltLayer and Magic Square.
CV VC
CV VC might sound like a tongue-twister but it’s actually an early-stage venture-capital firm based in the heart of Crypto Valley, aka Zug, Switzerland. Founded in 2018, the company is composed of true blockchain believers, all of whom have a knack for identifying and incubating the most promising web3 startups – many of them based in Zug itself.
Over the last six years, CV VC has compiled an impressive portfolio having helped bootstrap a long list of projects, including Blocksport, Coinrule, Float, DoxyChain, GenTwo, Ivorypay and Lawyerd. As well as making investments, the firm regularly publishes reports analyzing the industry goings-on in different territories such as Africa and Germany.
Firstminute Capital
A seed fund backed by over 130 unicorn founders, Firstminute Capital likens itself more to a community than a fund, with a focus on financing the next generation of “maverick entrepreneurs.” Established in 2017 by serial entrepreneurs Spencer Crawley and Brent Hoberman, it spearheads investment in the European market but has strong links to the US, investing at seed and pre-seed with amounts ranging from £250k to £3 million.
Like any VC worth its salt, Firstminute Capital performs extensive due diligence on projects before extracting its checkbook. Ventures fortunate enough to receive its support, financial and otherwise, include Argent, Ramp, Luther Systems, and Templum.
Rarestone Capital
Rarestone Capital bloomed during the height of DeFi summer in 2020 and is committed to backing entrepreneurs with intellectual and financial capital at pre-seed and seed stage. Leaning on industry experience dating back to before the first major bull run in 2017, Rarestone’s team is made up of growth hackers, software engineers and seasoned traders, giving it sufficient experience to offer advice on aspects such as marketing, strategy and business development.
Rarestone has recently invested in projects such as custody solution Qredo, on-chain risk engine Spectral, and Solana liquid stake pool Jito.
KR1
Operating since 2016, KR1 is a publicly listed investment firm headquartered in the Isle of Man, a self-governing British Crown Dependency located between Britain and Ireland in the Irish Sea. Over the last eight years, the company has made dozens of notable investments, including in major Layer-1 networks like Polkadot, Cosmos, and Ethereum.
KR1’s thesis differs from that of traditional fintech VCs, in that its primary focus is on digital assets as an investment unit rather than traditional equity in start-ups: much of its revenue comes from staking activities. However, it does still pursue traditional equity dealflow in promising blockchain startups on occasion, too.
Blockchain Founders Capital
Blockchain Founders Capital’s motto is “it takes a village to raise a startup,” meaning idea-sharing and collaboration are a major part of the firm’s work. Founded in 2022 and based in Germany, it specializes in supporting early-stage, mission-driven companies operating at the cutting edge of Web3, supplying capital as well as know-how and strategy support.
Over the last 12 months, BFC has invested in many promising projects, including Recall, Trever, River, OpenQ, and KINO, both in the pre-seed and seed stages.
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