One of the biggest startup investment firms, Bain Capital Ventures is launching a $560 million fund focused primarily on crypto-related efforts. Stefan Cohen, a managing partner at Bain Capital Ventures has said that the fund closed in December, and the firm has already invested $100 million into a dozen efforts, that are not yet disclosed.
Bain Capital Ventures has invested in crypto for the past seven years. It has been investing in crypto lender BlockFi Inc., decentralized financial lender Compound, and Digital Currency Group, which operates many crypto-related businesses. However, the new BCV Fund I is the first fund focused solely on this market.
The company is planning to use the fund to invest in everything, from crypto startups to DAOs. It also expects to deploy the fund in the next 2-3 years, and invest in 30 companies, Cohen said. The company is also planning to be a much more active investor than is typical as many crypto startups demand.
Bitcoin fell about 40% from its all-time high in early November amid concerns over the Federal Reserve's policies to combat rising inflation and geopolitical tensions, making the fund a difficult time for cryptocurrencies. It has been considered a difficult time for the launch of crypto.
Stefan Cohan further said that the fund may invest in company equity, promises of future tokens or the actual coins, which it might acquire from DAOs’ treasuries or on secondary markets. He further added, “Once the fund capital is deployed, Bain may consider launching more crypto-focused funds.”