One of the world’s largest startup investment organizations, Bain Capital Ventures, is launching a $560 million fund dedicated solely to crypto-related endeavors.
According to Stefan Cohen, a managing partner at Bain Capital Crypto, which is operating the fund, the firm has already invested $100 million in a dozen projects that it hasn’t yet disclosed.
A Long History in Investing
For the past seven years, Bain Capital Ventures has been investing in cryptocurrency, including crypto lender BlockFi Inc., decentralized-finance lender Compound, and the Digital Currency Group, which operates a number of crypto-related firms. However, the new BCV Fund I is the first fund dedicated solely to this sector.
In an interview, Cohen stated they become fairly high convinced that they’re at the beginning of a multi-decade technical change. They required a committed team and a committed fund structure.
The fund is debuting at a challenging moment for cryptocurrency, with Bitcoin down almost 40% from its all-time high in early November, owing to concerns about the Federal Reserve’s efforts to tackle growing inflation and geopolitical tensions.
Alex Evans, a managing partner at Bain Capital Crypto, said:
“We are fundamentally a long-term oriented, 10-year fund. We are taking a very long view. We are unfazed and, in some ways, uninterested in short-term market gyrations. We embrace the uncertainty of this market; we are long-term believers. When the certainty is there, it might be too late for this market.”
Bain intends to use the fund to invest in everything from cryptocurrency companies to decentralized autonomous organizations (DAOs) in areas like Layer 1 blockchains (which compete with Ethereum) and storage.
According to Cohen, the fund will be deployed in the next two to three years and will invest in about 30 enterprises. And, as many crypto businesses desire, it plans to be a far more engaged investor than is customary.
Cohen said the fund might invest in firm equity, future token commitments, or actual currencies, which it could get from DAO treasuries or secondary markets.
Bain may consider opening more crypto-focused funds once this fund’s cash has been allocated, according to Cohan.
“We believe this is a 10-to-20-year opportunity, and we’re putting together a platform here that we believe can support numerous funds over time.”
The new fund from Bain Capital adds to many investment funds dedicated to cryptocurrencies. It can be a good sign in a time when the market isn’t showing healthy trends. Investments from institutions always help the market rebound from its downtrend and move higher.