DeFiance Capital attracted an eight-figure investment

Venture firm DeFiance Capital has attracted “an eight-figure sum” of investments, according to The Block.

According to sources familiar with the matter, the company conducted the first close of its ‘liquid token fund’ at $100 million. This was aided by ‘a good mix of investors’ including other crypto funds, family offices and private investors.

DeFiance Capital was founded in 2020 in Singapore by Arthur Cheung. Earlier the company positioned itself as a ‘sub-fund’ passing through the bankruptcy proceedings of Three Arrow Capital (3AC).

In July 2022, DeFiance distanced itself from 3AC and announced its operational independence.

For the first time, Arthur Cheung’s venture firm announced a $100 million raise for its ‘liquid token fund’ last September. At that time, DeFiance managed to raise almost half the amount.

According to some reports, part of the company’s commitments were pared back after the collapse of FTX, however the fund still managed to close the first tranche and begin investing.

“Several venture projects have launched tokens that have fallen below their private-market valuations IDO/IEO. Some digital assets are even trading below their last private-round valuations. This situation is further exacerbated by the bear market that has led to indiscriminate selling of coins across the board,” according to DeFiance’s report.

The firm believes that several crypto startups have managed to place assets with an extremely favorable risk–return profile.

In the period from February 25 to March 3, crypto funds recorded outflows of $17 million, compared with $1.9 million a week earlier. Analysts at CoinShares attributed this to regulatory uncertainty.