THE COMPLETE WEB3 VC INVESTMENT FUNDS LIST 2024

As more developers build decentralized applications and crypto becomes mainstream, more investors recognize the power of Web3. Last year was pivotal for the Web3 sector as it matured from a developing community to a budding industry. It's evident that the Web3 space will continue to grow and receive more attention from investors.

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Forbes shared some high-level metrics of the Web3 venture capital activity in the 2021 market:

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• "VCs deployed $30B+ globally in 2021 into crypto startups.
• There are 65+ crypto unicorns, with over 40 of them created in 2021. There were close to 50 crypto startups that raised over $100M in 2021
• Total crypto market cap exceeded $3T."

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We researched key players within this segment and compiled a list of the top Crypto/Web3 investors in 2024. Some of these investors focus solely on the Web3 space, while some invest in a wide range of companies.

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The 7 Best Web3 VC Firms in 2024

Lunar3 Capital

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Lunar3 Capital, the investor arm of ecosystem growth firm Lunar Strategy, is an important player in the crypto and Web3 investment landscape, with a mission to seed future unicorns. Headquartered in Lisbon, Portugal, Lunar3 Capital specializes in connecting promising projects and ecosystems with influential stakeholders and influencers to foster long-term relationships.

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The team boasts extensive experience in nurturing projects from ideation to the launch of ecosystems, as well as aiding the growth of established ecosystems like Polkadot, ICP, MultiversX, and ROSE, along with over 170 Web3 projects.

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What we offer

One of Lunar3 Capital’s key offerings is its expertise in facilitating seed rounds, series A and B funding, KOL and influencer investor rounds, marketing and PR campaigns, and successful TGE/IDO launches for startups. With access to top key opinion leaders (KOLs) and market movers in the crypto industry, Lunar3 Capital helps startups secure investments from suitable partners, ensuring strategic fundraising to support the long-term vision of the project.

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Additionally, the firm facilitates over-the-counter strategic deals to raise funds without selling in the open market, taking advantage of its network of strategic partners, KOLs, market makers, and PR firms.

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Case Study

A notable case study of Lunar3 Capital’s success is its collaboration with LightLink, a Layer 2 blockchain on Ethereum. By strategically raising funds via KOLs and influencers, Lunar3 Capital enabled LightLink to secure investments and promote its project effectively.

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Client testimonials attest to Lunar3 Capital’s dedication, expertise, and proactive approach in supporting projects, even in the face of challenges.

Pantera Capital

Address: Menlo Park, California, United States

Phone Number: +1 650 854 7000

Email: ir@panteracapital.com

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Pantera Capital is the first cryptocurrency fund in the US solely focused on blockchain technology. Founded in 2013 by Dan Morehead, it made its bold move at a time when Bitcoin was still in its early stages, trading at a mere $65.

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Key points about Pantera Capital web3 VC firm:

• Investment Expertise Across Stages: Pantera offers a comprehensive investment approach, managing multiple funds catering to various stages of blockchain development. Its portfolio includes venture capital funds for established projects, early-stage token funds for promising startups, and more.
• Notable Successes: Pantera's impressive track record demonstrates its investment acumen. It has played a crucial role in the success of leading companies like 1inch Network (a decentralized exchange aggregator), Arbitrum (an Ethereum Layer 2 network), and Coinbase (the US's top cryptocurrency exchange).
• Keen Eye for Early Potential: Pantera doesn't shy away from early-stage Web3 projects. Its portfolio boasts investments in tokens like 0x, Cosmos, Polkadot, PsyOptions, Filecoin, and Livepeer, many of which have become prominent players in the blockchain space.
• Building the Ecosystem: Pantera Capital goes beyond providing capital to Web3 companies. It is actively involved in building the blockchain ecosystem, fostering innovation, and contributing to its growth.

Paradigm

Address: San Francisco, California, United States

Email: info@paradigm.xyz

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Paradigm is a venture capital firm specializing in crypto and Web3. It invests in innovative companies and protocols that are pushing the boundaries of this transformative technology.

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Its most recent investments include Chainalysis (blockchain analysis company), Matrixport (crypto financial services platform), and Fireblocks (digital asset custody and transfer solutions provider).

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The investment approach of Paradigm VC firm:

• Stage-Agnostic: It supports projects from their earliest conceptual stages (pre-seed) all the way to established growth companies.
• Long-Term Vision: Paradigm takes a multi-stage, long-term approach, believing in the potential of its investments to mature and thrive.
• Global Reach: Its reach extends beyond borders, fostering innovation on a global scale.
• Active Partnership: Paradigm goes beyond simply providing capital. It takes a hands-on approach, collaborating with their portfolio companies on various aspects.
• Technical Expertise: It offers guidance on mechanism design, smart contract security, and engineering.
• Operational Support: It assists with recruiting talent and navigating regulatory complexities.

Founders Fund

Address: Letterman Digital Arts Center San Francisco, California, U.S.

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Founders Fund is a VC firm with a bold vision. It was launched in 2005 in San Francisco and is led by tech visionaries like Peter Thiel, Brian Singerman, and Joey Krug. As of 2023, the firm boasted roughly $12 billion in assets under management.

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Founders Fund leverages its expertise and resources to empower innovative technology company founders across industries, fostering technological advancements and shaping the future.

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Holding the distinction of being the first institutional investor in groundbreaking companies like SpaceX and Palantir Technologies, early-stage venture investment with disruptive potential has become the hallmark of their investment philosophy.

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Salient features of Founders Fund VC firm:

• Investing in Breakthroughs: Founders Fund prioritizes backing "smart people solving difficult problems" across various sectors and stages of development. This commitment to innovation is evident in its impressive portfolio, which includes industry leaders like Airbnb, Facebook, SpaceX, and Spotify.
• Web3 and Beyond: While it is a generalist firm, Founders Fund has recently shown a growing interest in the Web3 space. Its investments in Bitcoin, Paxos, Bullish, and Block Green (a lending protocol for Bitcoin miners) highlight this focus. Notably, its early investment in Bitcoin yielded a significant return of $1.8 billion during the 2021 bull market.
• A Unique Perspective: Having themselves been founders, early employees, and investors in successful tech companies like PayPal, Palantir, Anduril Industries, and SpaceX, the firm's partners have a unique perspective and deep understanding of the entrepreneurial journey allowing them to identify better and support promising businesses.

Jump Crypto

Address: Chicago, Illinois, United States

Email: contact@jumpcrypto.com

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Jump Crypto is a division of Jump Trading Group, a prominent quantitative trading firm. It combines expertise from both worlds, fostering innovation in the crypto space to unlock the full potential of open-source, community-driven blockchain projects. Viewing itself as a catalyst for growth within the blockchain space, it is committed to building critical infrastructure that will provide the backbone for a thriving crypto ecosystem.

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Jump Crypto provides:

• Infrastructure Development: Jump Crypto actively participates in building software infrastructure and tools for blockchain ecosystems. This strengthens the foundation upon which crypto applications are built.
• Market Efficiency: It engages in trading and market-making activities, aiming to make global crypto markets more efficient and liquid.
• Open-Source Advocacy: For over six years, its team has championed open-source solutions by contributing to projects like Pyth network (on-chain market data oracle) and Wormhole (blockchain interoperability protocol).
• Long-Term Vision: Jump Crypto takes a long-term view of blockchain technology, cryptocurrency, and Web3 as a whole.

The Spartan Group

Address: 71 Robinson Road #14-01 Singapore 068895

Email: info@spartangroup.io

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The Spartan Group is a prominent blockchain investment and advisory firm headquartered in Singapore and Hong Kong. The company boasts extensive experience, including former bankers, hedge fund managers, and venture capitalists. Founded in 2017, Spartan Group has established itself as a leading player in the Web3 space. Its recent investments include Wind, Brine Fi, and DFlow.

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The Spartan Group offers:

• Tailored Advisory Services: The Spartan Group invests in early-stage blockchain projects and businesses with customized solutions.
• Asia Expansion: It guides clients in navigating the specificities of the Asian market.
• Fundraising Strategies: Its expertise helps clients secure the necessary capital for growth.
• Ecosystem Development: It assists in building a robust and thriving ecosystem around blockchain projects.
• Investment Opportunities: Through its investment arm, The Spartan Group actively invests in promising crypto ventures with high growth potential.
• Industry Expertise: It is an active investor. It is one of the most active venture capital firms in the blockchain industry, with a portfolio that includes some of the leading crypto companies and networks.
• Deal-Making Prowess: Spartan Group is a leader in Web3 mergers and acquisitions (M&A) and capital raises.

Multicoin Capital

Email: hello@multicoin.capital

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Multicoin Capital is a venture capital firm with a distinct approach. It is thesis-driven, meaning it invests based on its strong convictions about the future of specific areas within the cryptocurrency and blockchain space. Its core interest lies in cryptocurrencies, tokens, and blockchain companies that have the potential to disrupt and transform trillion-dollar markets.

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Founded in May 2017, Multicoin Capital has carved out a prominent position within the cryptocurrency investment landscape. They are recognized as a leading VC firm investing in the Web3 industry.

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Salient features of Multicoin Capital:

• Renowned Research & Analysis: Multicoin Capital is known for its in-depth research and insightful analysis, providing valuable insights into the crypto space.
• Exceptional Deal Flow: Its ability to identify and secure investment opportunities sets it apart.
• Strong Brand Recognition: It has built a powerful brand within the cryptocurrency industry.

9 Other Web3 VC Firms Investing Crypto & Blockain 2024

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Union Square Ventures

Union Square Ventures is a thesis-driven venture capital firm based in New York. It has investments in over 100 companies, including well-known projects such as Stripe, Quizlet, and Stack Overflow. Although it has an impressive track record with standard companies, it also has an even more impressive track record in the digital currency space with investments in Coinbase, Protocol, and Numerai.

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The main goal of Union Square Ventures is to leverage networks, platforms, and protocols to allow trusted companies to broaden access to knowledge, capital, and well-being.

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Digital Currency Group

Digital Currency Group is a New York-based investment firm specializing in digital assets. It supports blockchain companies ranging from early-stage projects to fully established companies, the most famous being Coinbase, Circle, Ledger, Ripple, and ShapeShift. Digital Currency Group has invested in over 100 companies in over 30 countries; it also owns and operates Coindesk, Genesis Trading, and Grayscale Investments.

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DragonFly Capital

Dragonfly Capital Partners is a venture capital firm based in San Francisco, California. The firm prefers to invest in seed-stage, early-stage, and later-stage companies operating in the software, fintech, cryptocurrency, and financial services sectors.

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Galaxy Digital

Galaxy Digital is a full-service digital assets management fund founded by former Fortress Investments hedge fund manager Michael Novogratz. Galaxy Digital has extensive experience in portfolio management and blockchain technology and intends to bridge the worlds of cryptocurrency and institutional investing together.

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Benchmark Capital

Benchmark Capital is a venture capital fund whose primary focus is early-stage venture investing in social, mobile, local, and software companies. It has invested in over 250 early-stage startups and paid out over $22 Billion to investors. They are also widely known for creating the first equal ownership and compensation structure, where each of their six full-time partners shares profits evenly, making no difference between their junior and senior partners.

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GV

Silicon Valley-based GV is a venture fund that provides seed and growth stage funding to companies across all stages and sectors. Its focus is mainly on artificial intelligence, robotics, and life sciences, with a recent shift to crypto and blockchain-based companies. GV has invested in more than 300 companies that push the edge of what's possible. Additionally, it is known as Google Ventures and is the venture capital arm of Alphabet, Inc.

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AngelList

AngelList is the leading platform for startups, helping by investing in them or assisting with raising money. It can even pair job seekers with startups to help build their teams. Since its launching in 2010, AngelList has helped raise over $750M for over 2,000 startups, causing it to become the world's largest startup community.

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Tribe Capital

Tribe Capital, a San Francisco venture capital firm founded in 2018, fosters innovation across a wide range of industries. It backs companies at various stages, from fledgling startups with exciting ideas to established players on the cusp of major growth. Its investment focus is broad, encompassing sectors like software-as-a-service (SaaS), cybersecurity, digital health, e-commerce, fintech, and blockchain technology.

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Interestingly, Tribe Capital began as a spin-off from another prominent venture capital firm, Social Capital. Its approach is flexible, utilizing various funding mechanisms like venture capital, growth equity, and loans to provide the right support for companies at different stages of development. It even looks beyond US borders, investing in promising startups globally. In a nutshell, Tribe Capital acts as a champion for innovation, fueling the growth of diverse companies across the technological landscape.

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a16z Crypto

a16z was founded in 2009 by tech veterans Marc Andreessen and Ben Horowitz in Silicon Valley, California. With a massive $35 billion in assets across multiple funds, a16z backs entrepreneurs who are considered bold for using technology to build the future. Its investment approach is stage-agnostic, supporting companies from the earliest pre-seed stage to well-established growth companies.

It invests in a wide range of sectors, including bio and healthcare, consumer, crypto, enterprise, fintech, games, and companies striving for "American dynamism." Recent investments include Dapper Labs, OpenSea, and Ripple, reflecting their focus on emerging trends like NFTs and blockchain.

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How Do Web3 Venture Capital Firms Work?

Crypto venture capital (VC) firms are groups of crypto investors who offer financial assistance to promising crypto projects. These investors help crypto projects grow from the ideation stage to a successful business with the aim of multiplying their investment.

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These venture capitalists will take their time to review a project before investing in it. This is done to ascertain the project’s viability, growth potential, and return on investment.

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The various stages of a crypto project are:

• Pre-seed stage: The project is still in the ideation phase, and most of the funding will come from close friends and relatives.
• Seed round: In this stage, the VC firms will properly access the project’s viability and growth potential. To secure the investment, the crypto project will have to provide a comprehensive pitch deck, thorough competitor and market analysis, a clearly defined road map, and detailed cash flow projections.
• Series A: This stage is where products or services are validated, and the project is growing significantly. At this stage, investment is expensive, with the main focus being on marketing and advertising, but with a lesser investment risk.
• Series B: This stage is for a project that is showing rapid growth and progress. The investment will be focused on business development, human resources, sales, and more.
• Series C: A company that has reached the Series C stage is already a successful venture, and it needs investment to expand or diversify its existing products or services.

FAQs About Web3 VC Investment Funds

What is VC in Web3?

Web3 venture capitalists are investors who specialize in investing in innovative start-ups in the decentralized web space. They focus on providing funds, expert advice, and resources to Web3 projects with blockchain, cryptocurrency, and other similar technologies.

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Why do VCs invest in Web3?

VCs invest in Web3 because of its core principles, which revolve around decentralization, security, and transparency. This makes VCs looking for the next wave of transformative technology invest in Web3. The potential to revolutionize industries and create entirely new economic models fuels VCs' investment.

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What do VCs in Web3 invest in?

Venture capital firms in Web3 invest in various early-stage start-ups with growth potential and blockchain companies that develop decentralized Apps or dApps, protocols, and platforms.

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