Multicoin Capital has announced the formation of a third venture fund worth $430 million.
The firm intends to use the structure to back projects capable of ‘changing mass consumer markets’.
The company intends to focus the new fund on investments in solutions that ‘incentivise people to undertake verifiable work that creates real infrastructure’.
As examples of such projects, Multicoin Capital cited the decentralized wireless the Helium network and the mapping blockchain service Hivemapper.
The latter incentivises users to provide autoregistrar records to create navigation maps. In April, a Solana-based application raised $18 million in investments in a round led by Multicoin.
Another area for the new fund’s investments the firm identified is DataDAO. These are decentralized objects that also employ the concept of ‘proof of physical work’, but are primarily data-focused.
Multicoin believes there are many fragmented data sets that, if combined, could be more valuable than the sum of their parts. However, consolidation is not feasible due to privacy concerns or because ‘aggregators do not submit to user governance’.
The firm believes these issues can be solved with cryptocurrencies that can provide robust incentives.
As another avenue for the fund’s investments, the company is considering projects that monetize content through online platforms using digital currencies, NFTs and social tokens.
Earlier in 2021, Multicoin launched Venture Fund II with assets of $100 million.
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