Dispersion Capital launches $40 million Web3 fund

Dispersion Capital announced the launch of a $40 million venture fund focused on investing in Web3 infrastructure.

Today, we launched our $40 million pre-seed and seed fund focused on foundational web3 infrastructure. Thank you, @jacqmelinek from @TechCrunch, for covering this milestone! https://t.co/Q9NQbckJTZ

— Dispersion Capital (@DispersionVC) May 23, 2023

The fund will prioritise early-stage startups working on building a ‘multi-chain, multi-currency and multi-platform world’.

The fund has already invested in 20 companies, which subsequently received additional funding.

Support for the vehicle came from Ripple, HashKey, Wemade, Circle Ventures, Alchemy Ventures, Cherubic Ventures, Forte and NGC.

Founder Patrick Chang said the firm aims to ‘bring Web3 to a level comparable with cloud computing’.

\”In the sector, onboarding, scalability and hacks were disappointing. The infrastructure was incredibly immature, and people did not think about it,\” he explained.

Dispersion Capital focuses on backing startups targeting specific layers of Web3, including fintech and gaming infrastructure, security, data and platforms that challenge legacy industries.

As reported, in January–March 2023 the volume of venture investments in crypto firms across 353 funding rounds amounted to $2.6 billion — the lowest since Q4 2020, according to PitchBook.

Earlier, the organisation’s analyst Robert Le attributed the decline in venture activity to rising interest rates and the collapse of SVB — the backbone bank for such companies. The specialist suggested the end of the worst period of the ‘financial drought’.