Referring to a fertile ground for investment thanks to the bear market, Seven Seven Six, Alexis Ohanian’s venture capital firm, will deploy a $177 million fund to invest in cryptocurrencies. The co-founder of Reddit thus confirms his interest in this type of asset and more broadly in Web 3.0.
The bear market, a breeding ground for investments in cryptocurrencies
Alexis Ohanian, most known for being one of the founders of the community platform Reddit, seems to want to take advantage of the opportunities offered by the bear market.
Indeed, his venture capital firm Seven Seven Six plans to raise $177.6 million to develop a new fund to make multiple investments in certain token projects.
This new fund, called Kryptós, will thus be exclusively focused on cryptocurrencies and should see the light of day in October, according to information reported by The Information. The latter explicitly mentions a favorable period for investment :
This is potentially a unique opportunity to invest in strong founders at a reduced price.
Katelin Holloway, founding partner of the venture capital firm, also supported this view:
Now is the best time to buy if you are in the industry for the long haul. […] It is in sale. Everything is on sale.
According to The Information, the company Seven Seven Six would have registered with the American Securities and Exchange Commission (SEC) in order to be able to invest in tokens and would have received its approval in April.
Kryptós will charge 2.5% management fees to investors and will receive 25% of the profits with the possibility of scaling up to 35% if the fund is successful.
Alexis Ohanian, a regular in the crypto community
Although Kryptós is Seven Seven Six’s first fund exclusively dedicated to cryptocurrencies, the venture capital firm and its founder are far from being at their first attempt. Concerning her, she currently manages more than 900 million dollars in assets across different industries, some of which already relate to cryptocurrencies and more broadly to Web3.
The company, which has a large portfolio, has notably invested in the past in Nova Labs (formerly Helium Inc.), a decentralized wireless network project, or in the Rainbow Wallet of Ethereum (ETH) during a Series A funding round.
In addition, the venture capital fund had collaborated with Polygon (MATIC) in order to invest 200 million dollars in young Web3 projects, in particular in order to encourage ”the ideals of the open-source of the beginnings of the Web”, sometime after developing a similar fund alongside Solana Labs.
Many reputable venture capital companies are embarking on massive investments in cryptocurrencies, as was the case with Sequoia Capital last February, which then announced the deployment of a $600 million fund at this effect.