DeFi

Jump Capital Launches $350M fund focused on crypto and DeFi

  • This is Jump Capital's 7th venture fund and is much larger than its 6th fund of $200 million
  • With its latest fundraise, the firm is looking to invest in crypto sectors such as DeFi and Web 3.0 applications
  • According to Chainalysis, institutional investors played an important role in DeFi adoption in Q2

Venture capital firm Jump Capital has launched a fund of in total $350 million with an increased focus on the evolving crypto ecosystem.

Jump Capital is looking to invest in DeFi and web3 applications

This is Jump Capital’s 7th venture fund and is much larger than its 6th fund of $200 million. The total amount of capital raised for all seven funds has not been publicly disclosed, but according to Jump co-founder and partner Sach Chitnis, the fund has attracted 167 investors, many of whom have re-entered in previous capital raises and many who wanted access to emerging crypto companies.

With its latest fundraise, the firm is looking to invest in crypto sectors such as DeFi and Web 3.0 applications. The crypto investments are led by Johnson and Jump Capital General Partner Saurabh Sharma. It is worth noting that Jump Trading is active in the Solana ecosystem. It is a liquidity provider for FTX’s decentralized exchange Serum and the founder of Pyth, an oracle designed to bridge blockchain and real-world data which launched on Solana. In August, Jump announced the acquisition of Certus One, a blockchain engineering firm that appears to be part of its expansion into the crypto space.

Institutional capital is flowing into DeFi

Jump Capital is not the only company betting on the crypto space today. Huobi Ventures announced a $10 million “GameFi” fund to invest in early-stage projects that integrate blockchain gaming and decentralized finance (DeFi). According to blockchain intelligence company Chainalysis, institutional investors played an important role in DeFi adoption in the second quarter of 2021.

This trend indicates that investors are showing less interest in Bitcoin-related investment products as large investors seek to tap into the growing DeFi ecosystem. Another example of this is the recently announced division of Brevan Howard called BH Digital, which will manage cryptocurrencies and digital assets.

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