Crypto vet Meltem Demirors raising $75 million for two venture funds under Crucible Capital

Meltem Demirors has become a prominent voice in the blockchain space through her work at digital asset investment firm CoinShares and her 263,000-plus followers in the trenches of Crypto Twitter. After investing in hundreds of companies on CoinShares and becoming an angel investor, Demirors is launching her own venture firm called Crucible Capital, according to forms filed with the Securities and Exchange Commission on Tuesday.

Delaware-based Crucible is raising two separate funds, planned at $30 million and $45 million, with Demirors listed as the managing member of the general partner. Both forms show the funds have not yet raised outside capital. That doesn’t mean the funds haven’t received informal financing commitments or that Demirors has already raised money through other institutional vehicles. Demirors declined to comment.

The crypto industry has been on a roller coaster ride in 2024, with prices reaching new all-time highs, but it has also seen major declines, including Monday’s crash, which was the worst since 2022. Meanwhile, the venture sector has bounced back after a long period in which deals and investments had all but dried up. This year, the average deal size has increased from $3 million in Q1 to $3.2 million in Q2, according to data from Galaxy Research. Venture funding has also seen major increases, with Paradigm announcing a new $850 million fund in June.

While Demirors’ Crucible is targeting a more modest $75 million, the filings show a continuing appetite among investors in the digital asset sector, particularly as its political fortunes in the United States appear to be improving.

Crypto veteran

Demirors is known for his often irreverent posts on X, but he has long been a strong player in the industry through his work at CoinShares and as an angel investor. According to his website, Demirors has invested in crypto projects including custody firm Anchorage, prediction platform Polymarket and website naming service Unstoppable Domains.

Demirors left CoinShares in January, according to LinkedIn. He appeared in his new role as a general partner at Crucible Capital in an announcement that he would speak at Korea Blockchain Week in September. Crucible also has a website and describes itself as a seed-stage investment fund focused on four categories: digital infrastructure, capital markets and marketplaces.

Crucible will join a crowded community of crypto startups, ranging from small companies focused on sectors like gaming and DeFi to mega-funds like Paradigm and Haun Ventures that have raised billions of dollars. Unlike traditional venture capital, where investors back companies by buying stock, crypto VC firms typically act more like hedge funds, actively investing in liquid assets ranging from Bitcoin to memecoins. The filings do not specify whether Crucible will pursue liquid investment strategies, but such firms are typically required to register with the SEC under a special category as investment advisors.

The story continues

Even as the venture landscape thaws for crypto, investment remains focused on early-stage deals, with little prospect of an exit for larger firms. According to Galaxy, early-stage companies will receive 78% of capital in Q2 2024, while only 20% will go to later-stage firms.

This story was first published on Fortune.com