Polychain Capital, cryptocurrency investment manager, is raising US$ 200 million for a brand new second venture fund, according to CoinDesk. The amount is almost ten times higher than that of the company’s first fund of US$ 25 million.
The second fund would have been opened in early 2020 and would be accepting minimum investments of US$ 1 million for up to three years, according to Coindesk. This means that the fund is aimed at institutional investors, one of the growing markets in recent years. The fund invests in blockchain startups
Polychain Capital new fund was registered in December last year, according to U.S. Securities and Exchange Commission (SEC) documents. Funds should prioritize investments in blockchain companies with enhanced privacy, engineering, and flexibility.
Blockchain networks with enhanced privacy, engineering and flexibility will be prioritized in the second venture fund, leveraging existing investments in projects such as Dfinity cloud platform and Cosmos and Polkadot blockchain interoperability.
Exposure to exchanges and custody firms
In the registered document at SEC, Polychain says it sought exposure to exchanges and custodians. Meanwhile, new investments in the main portfolio turn to decentralized financial entities. These include the MakerDAO project, the dYdX margin trading wallet, the Dharma blockchain bank and the Compound lending protocol, among others.
Polychain Capital was founded in San Francisco by Olaf Carlson-Wee, Coinbase’s first employee and former Head of Risk. Polychain’s CTO, Rob Witoff, and the partners Sam Rosenblum and Aurora Harshner also come from the exchange.
Hedge funds gain ground in market
Crypto hedge funds are gaining market ground. Many combine investment strategies in the purchase and sale of cryptocurrencies, as well as contributions in startups and blokchain companies to deliver returns. And they have been an instrument to connect institutional investors to the crypto market