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Highlights
- Bain Capital Ventures (BCV), a subsidiary of one of the world’s most prominent private equity firms Bain Capital, is all set to launch a $560 million fund that will be exclusively focused on crypto ecosystem.
- Although the BCV is present in various crypto startup spaces for the past 7 years, the Bain Capital Crypto (BCC) is aimed to support the decentralized finance (DeFi) and Web 3 categories.
- Boasting of firms such as BlockFi, Compound, Digital Currency Group, Lolli, etc., BCV has invested close to US$100 million in the capital so far in various projects.
The crypto world is growing each day and many retail and institutional companies are looking for perfect opportunities to make most of these opportunities. Leading venture capitalist firms and private equity firms are joining the crypto bandwagon with offerings that are not unique but will also allow them to expand their respective businesses.
Bain Capital Ventures (BCV), a subsidiary of one of the world’s most prominent private equity firms Bain Capital, is all set to launch a $560 million fund that will be exclusively focused on crypto ecosystem. Although the BCV has been in various crypto start-up spaces for the past seven years, the Bain Capital Crypto (BCC) is looking to provide support to the decentralized finance (DeFi) and Web 3 categories.
So far, BCV has invested close to US$100 million in various projects, including BlockFi, Compound, Digital Currency Group, Lolli, etc. Bain Capital had filed for the fund registration in September last year before closing it in November.
Also read: 5 popular and frequently used Layer 1 cryptos
Focussing on technological shift
Stefan Cohen, the managing partner at Bain Capital Crypto, said that the firm’s primary goal is to invest in Layer-1 scaling solutions, privacy products, middleware, etc., with a focus on bringing technological shift.
The BCC team, which has three core areas of expertise: technical and economic research, governance design, and increased participation, aims to develop user-built applications.
Also read: UMA, Waves, Terra, THORCHain, Anchor: Top performing crypto this week
The Bain Capital Ventures seems to be unhinged by the overall crypto environment, which is seen leading tokens like Bitcoin lose close to 40% from their all-time high value. With eyes on long-term goals, the firm is not much worried about the short-term market trends.
Alex Evans, managing partner, BCV, said that the firm is unfazed by uncertainty in the market at the moment, and it would be unwise for the team to wait till the market settles down, or as it would be too late.
Not the only one
Bain Capital is not the only firm to develop such crypto-focused funds. Recently, Sequoia Capital had announced its plans to raise US$600 million for its crypto-specific fund. Sequoia is expected to invest in crypto tokens that are both listed and those which are yet to be listed. Sequoia, just like Bain Capital, is not new to the crypto space and has invested in companies such as FTX, StarWare, etc.
Besides Bain Capital and Sequoia, many companies have ambitious plans for the crypto ecosystem. Whether they will be fruitful or not, only time will tell. For now, increased participation from VCs and private equity firms may give much-needed support to the upcoming tokens in the crypto ecosystem.
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