Crypto VC Lemniscap raises $70m fund to back web3 startups

Crypto-focused venture capital firm Lemniscap has announced a $70 million fund to support startups in the emerging web3 ecosystem.

The new fund will be backed by Accolade Partners, a fund of funds focused on early-stage VC, according to Lemniscap. Accolade also specializes in growth equity and blockchain fund investments.

Lemniscap plans to use the $70 million fund to support early-stage Web3 founders, according to a press release published on August 28.

The areas of focus in the blockchain ecosystem will include zero-knowledge infrastructure, decentralized physical infrastructure, Bitcoin (BTC) ecosystem, and phygital. DePIN and ZK are becoming increasingly important ecosystems in the market.

Ethereum (ETH) founder Vitalik Buterin shared his latest thoughts on ZK, noting that “one of the first use cases” for this technology is airdrops.

Financial firepower

Founded in 2017, Lemniscap has invested in over 130 projects, including top protocols in the web3 space. The portfolio consists of other projects such as Avalanche, The Graph, EigenLayer, Puffer, StepN, and Axelar.

The company aims to invest further in the sector, according to Lemniscap founder and managing partner Roderik van der Graaf, who said the fund represents “significant financial firepower” that will be allocated to support “the next generation of ambitious industry pioneers.”

VC funding is growing

The crypto venture capital space supports some major players and funds like Paradigm, Pantera Capital, and a16z Crypto. VC investments in the crypto industry have continued to expand after the decline seen following the FTX crash.

In the second quarter of 2024, total venture capital investment increased to $2.7 billion.

Story Protocol’s $80 million and Chaos Labs’ $55 million investment were among the largest VC investment rounds last month.