Castle Island Ventures, a venture capital firm, wants to provide support to cryptocurrency startup firms. Castle Island Ventures is a blockchain-powered company in the US associated with Matt Walsh and Nic Carter.
To make this move possible, venture capital has raised $250 million in funding to support the firms.
$250M fund to support crypto startups
A report from Bloomberg has said that the venture capital firm is planning to use $250M to support new projects in the crypto sector. The firm was launched in 2018, and since then, it has dedicated more than $300M to support crypto startups.
The venture capital firm raised $30M in funding to create tools dealing in Bitcoin. Early last year, the firm raised another $50M in funding to support firms dealing in decentralized finance (DeFi) and stablecoins.
Some of the firms that this venture capital has already invested in include Bitwise, BlockFi and River Financial, a company offering Bitcoin services. This new fund will focus on firms developing innovative tools dealing in internet infrastructure for Web3, financial services and monetary networks.
“The market opportunity and the wave of entrepreneurs that are actually starting things are just a lot bigger. The way we’ve reacted to the explosion in the space is to beef up our team and give ourselves the ability to go out and be a lot more aggressive in deploying capital in some of these companies,” Walsh said.
Walsh and Carter are former employees at Fidelity Investments. In the recent announcement, the venture capital firm said that Ria Bhutoria, a former director of research at Fidelity, will become a general partner. The firm seeks to grow its team and participate in funding rounds as part of its future plans.
Venture capital firms want a share of the crypto space
The cryptocurrency firm has seen notable success in terms of adoption, and with financial institutions facing an influx of demand for crypto services from their clients, the adoption is expected to increase.
Venture capital firms have been investing heavily in the crypto sector. During the first quarter of 2021, VCs had poured more than $4 billion in funding to startups in the blockchain industry. In 2021, Andreessen Horowitz announced raising a $2.2B cryptocurrency fund. Traditional financial giants such as PayPal and Visa have also joined these funding rounds.
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