Highlighting their extensive experience, Brandon Gath, the managing partner of Kraken Ventures, mentioned in an email to Cointelegraph that the new fund would center on early stage founders. He emphasized that the fund’s support would extend throughout the entire entrepreneurial journey, from initial capital to eventual IPO.
Kraken Ventures is launching its second fund, building upon its existing thesis and commitment to guiding founders. Their initial fund, announced on December 17, 2021, raised $65 million according to Crunchbase. The new fund’s target of $100 million represents a substantial increase, even amid a perceived slowdown in the blockchain and cryptocurrency-related venture market.
Gath also conveyed Kraken Ventures’ belief in the efficacy of smaller funds for entrepreneurs and investors. He cited data that shows small funds tend to outperform larger ones, indicating an inclination to allocate the fund across multiple projects rather than concentrating on a few large-scale investments.
The email also noted that a significant portion of the fund would be allocated to follow-up investments.
Reportedly, Kraken Ventures has made investments in over 32 companies, with a significant portion of these investments being directed towards Series A funding rounds. In a recent development, the group participated in a funding round that secured $15 million for the fintech startup Rightfoot. Rightfoot specializes in constructing a data portal tailored for computer-permissioned data.
Past investments encompass a range of sectors, including artificial intelligence firms, decentralized finance entities, and multiple enterprises involved in blockchain technology.
According to Brandon Gath, Kraken Ventures, while operating independently and with full autonomy, shares a mission with the cryptocurrency exchange Kraken. This mission centers around fostering a more open and transparent financial ecosystem by supporting early-stage founders engaged in crafting blockchain-based products that align with this shared objective.
A spokesperson has confirmed through an email correspondence with Cointelegraph that Kraken Ventures is in the process of raising $100 million for its second crypto ventures fund.