Bain Capital Ventures, one of the world’s largest investment companies with $ 5.1 billion in assets under management, has announced the creation of a new $ 560 million fund focused on crypto-related investments.
The fund closed in November and has already invested $ 100 million in 12 undisclosed projects, according to a Bloomberg report on Tuesday.
Bain Capital Ventures has a track record of investing in the crypto and blockchain sectors, and supports companies such as BlockFi, Compound and Digital Currency Group. The latest BCV Fund I is the first of its kind from Bain Capital Ventures, which focuses exclusively on the cryptocurrency market.
A spokesman for BCV told the Cointelegraph that the purpose of the crypto fund is to support entrepreneurs who are developing the next generation of open internet infrastructure. The spokesman went on to say that the “Special Investment Fund” was established with a high-tech and collaborative approach to help crypto and Web3 creators from establishment to growth.
When asked whether cryptocurrencies will play an important role in the future of venture capital, the representative replied that the Internet is undergoing a major change towards open and decentralized services driven by societal considerations.
“We believe this seismic shift will be one of the most significant technological advances since the advent of the Internet and will require a new type of investment company that can meet the needs of the founders and the ecosystem from idea to scale.”
Venture capital, cryptocurrency and investments
The latest development comes after a lot of venture capital interest in crypto through 2021. According to Pitchbook data, venture capital investments in crypto projects exceeded $ 25 billion last year, the highest amount ever recorded.
Related: Meet the 5 busiest crypto investors in 2021, according to PwC
In 2022, despite the high price volatility of cryptocurrencies, investment funds continued to make large investments in this sector. In February, the US venture capital firm Sequoia Capital announced the creation of a $ 600 million crypto fund. Polygon has raised $ 450 million in a round of funding backed by some of the largest blockchain venture capital firms.
The cryptocurrency market is in recession. The price of Bitcoin (BTC) is down about 40% from record highs in early November as concerns grow over the Federal Reserve’s monetary policy to combat rising spending and geopolitical conflicts. However, a spokesman for BCV spoke about the current stagnation in the market, and noted that the dedicated crypto fund is “mainly long-term oriented” and not affected by short-term market fluctuations.