Venture capital firm Golden Gate Ventures (GGV) today announced the launch of LuneX Ventures, a dedicated fund for global blockchain investments.
The fund was the result of partnership between the firm and its former Head of Growth Kenrick Drijkoningen, who is leading LuneX Ventures as Founding Partner.
The firm also announced the appointment of its first full-time associate Tushar Aggarwal, who is known for running blockchain podcast “Decrypt Asia.”
“Targeted size of the fund is US$10 million with a final close to happen within this year. We have a strong pipeline of five to 10 investments ready to go and made our first commitment to Singapore-based Sparrow Exchange already,” Drijkoningen explained to e27 in an email.
In a press statement, with a focus on cryptocurrency and blockchain, LuneX Ventures said that it will build on GGV’s strength in backing growth companies.
It will invest in companies around the world that are building out services to grow the new crypto ecosystem.
“Qualities favoured include scalable infrastructure and interoperability, along with practical solutions to issues such as custody and security, and institutional services that will drive the next wave of adoption,” the company stated.
“We view blockchain as a foundational technology, on a par with or possibly exceeding the internet in disruptive potential. 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,” Drijkoningen said.
He also said that beyond capital, blockchain startup founders are seeking for a specialised fund that can also provide them with access and expertise, which conventional VC funds “have trouble to provide.”
“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 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,” he explained.
GGV’s portfolio companies have raised “over” US$35 million through ICOs; the firm hinted that more of its portfolio companies will follow this route.
Image Credit: LuneX Ventures