FTX launches $2 billion venture fund

The FTX cryptocurrency derivatives exchange announced the launch of a venture arm. The fund will deploy $2 billion into startups at various stages of development and across segments of the crypto market, according to WSJ.

According to FTX Ventures head Amy Wu, the fund is prepared to invest from $100 000 to “hundreds of millions of dollars.” Capital deployment could occur by year-end if favourable opportunities arise, she added.

The executive is known for her role as head of investments in gaming and crypto startups at Lightspeed Venture Partners. She will remain on the board of the venture firm despite the new appointment.

Beyond running the fund, Wu is tasked with overseeing mergers and acquisitions, forging partnerships, and initiatives in the gaming space.

The fund is also eyeing opportunities in crypto insurance and security, developer tooling, and cross-chain protocols.

Prior to launching FTX Ventures the crypto derivatives exchange had invested in dozens of startups, including Faraway, DriveWealth Holdings and Web3Auth.

The fund is prepared to participate in financing rounds with partners and to acquire equity and tokens, including during presales. Coordination of portfolio companies with the platform team is expected.

Back in July FTX attracted a record $900 million at the time, valuing the company at $18 billion. In October the crypto derivatives exchange closed a Series B-1 financing round for $420.69 million, after which its valuation reached $25 billion.

In November, a former Citi top executive launched a $1.5 billion fund for investments in the crypto industry.

Earlier similar structures formed Pantera Capital ($600 million) Paradigm ($2.5 billion) and Andreessen Horowitz ($2.2 billion).

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