Galaxy Digital, Multicoin Capital and Variant to commit $685 million to crypto startups

The cryptocurrency trading bank Galaxy Digital and venture firms Multicoin Capital and Variant said they planned to invest in crypto startups in the amounts of $325 million, $250 million and $110 million respectively.

Galaxy Digital’s structure targets projects at the intersection of interactive entertainment, Web3 and social networks. The funds were raised by its subsidiary Galaxy Interactive.

Proud of our team at $GLXY. @galaxyRTK and @samenglebardt and the team they put together really love and know the interactive space. We are LONG the metaverse at Galaxy. https://t.co/fA5BNFaRBI

— Mike Novogratz (@novogratz) October 19, 2021

The new fund will also be able to purchase tokens.

Galaxy Interactive will have a total of $650 million, making the fund the largest among the 100 gaming-focused funds, according to Drake Star Partners. The investment bank notes that startups in this segment raised a total of $71 billion in the first nine months of 2021.

Of the current $325 million Galaxy Interactive has already invested $150 million. In particular, the funds went to Republic, 1047 Games, Elodie, ROAR, Art Blocks and Masterworks.

Multicoin plans to raise $250 million by the end of 2021 for its third crypto venture fund, according to The Information. The new vehicle will focus on investments in DeFi, primarily on interest-rate market protocols.

In May, the company launched its second fund with $100 million in assets.

The fund, created by former a16z personnel, with $110 million in assets, will focus on the so-called “ownership economy”—products and services created, operated and owned by users. The portfolio includes Uniswap and Mirror tokens.

Variant Fund II: $110 million fund built for the ownership economy — Variant https://t.co/XFOxJMR777

— MC HAMMER (@MCHammer) October 20, 2021

Variant Fund II is aimed at supporting teams that use token distribution as a way to incentivize creative projects — from games to music and art. The fund intends to invest, among other things, in consumer platforms, games, infrastructure and DeFi.

Among the investors in Variant Fund II are employees of Uniswap, Compound, Foundation, Zora, Yield Guild Games, Mirror and other projects. The firm pursues a thesis — ownership for users and founders it backs.

“I wanted to hand ownership to users. Web2 lets people earn money, but not at the platform level. [Thanks to Web3] you can distribute ownership as easily as information”, — said in an interview Decrypt co-founder of Atelier Ventures Li Jin, who joined Variant.

Earlier in October, Bitkraft Ventures launched a $75 million fund focused on blockchain games.

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