Lightspeed Faction launched a $285M seed fund for crypto projects
Venture capital firm Lightspeed Faction has created a $285 million fund for crypto startups, according to a Nov. 9 announcement. The fund will focus on “early-stage blockchain projects” and will provide capital based on the size of these projects, the announcement said.
In fact, no entrepreneur will ever have the answer: “Why crypto?” We are completely red pilled.
We're coming out of hiding and announcing the launch of Lightspeed Faction Fund I, a $285M early-stage fund dedicated exclusively to crypto https://t.co/oUiAh6t5Sp
— Faction (@FactionVC) November 9, 2023
Lightspeed Faction said the founders have access to an “experienced group of blockchain investors and operators,” including teams from Amber Group, Blockchain.com and Coinbase. The firm is a joint venture between traditional tech-focused fund Lightspeed Venture Partners and a crypto-only fund faction. It tries to combine the expertise of both organizations to maximize success.
Banafsheh Fatih, founder of Lightspeed Faction, said that $285 million in funding is needed for the many promising blockchain projects that are springing up every day:
“[C]rypto is a technology that defines a generation, and we are fully committed to investing behind the best entrepreneurs who want to push blockchain technology forward. The blockchain ecosystem is full of promising projects that seek to disrupt everything from financial systems to telecommunications.
Related: Crypto VC Firm Spartan Capital Invests in Pendle to Boost DeFi Growth
In the announcement, Lightspeed Faction said it has backed several blockchain startups during the bear market that have turned out to be successes, including Crossmint, Lens, Naria.i, Skip.money, Matter Labs and others. He generally participates in the seed and series A rounds.
Crypto venture capital funds fell to a three-year low in the third quarter of 2023, with many funds seemingly spooked by low crypto prices and a lack of media attention compared to the 2021 bull market. However, some projects still managed. Even at these low levels of funding, to earn several million dollars.
