OP Crypto Raises $100M for ‘Fund of Funds’ to Support Fund Managers

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A typical fund consists of allocating capital in certain sectors or industries, but venture capital firm OP Crypto takes its own approach to the term.

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OP Crypto is raising $100 million for its new investment, dubbed the Fund of Funds, to funnel capital into new fund managers focused on early-stage crypto investments. Foundation for your foundation, if you like.

“This is the main diversification tool for investors looking to be actively involved in crypto,” David Gan, founder and general partner of OP Crypto, told TechCrunch. “But it’s also a very good tool for strategic investors who want to really increase the flow of their deals across international borders and to people with niche vertical experience.”

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The OP Fund will support fund managers from specific sub-sectors such as infrastructure, decentralized finance, NFTs, the metaverse, games, as well as those with a “geographic advantage” in Latin America, Africa, India, and Southeast Asia, among other elements. .

Despite the current choppy and bearish market sentiment, the firm has received $50 million in commitments from both traditional and crypto-focused LPs, including LedgerPrime and FJ Labs, with a $100 million target and hard cap.

Lucas He, COO of OP Crypto and head of research, will become the fund’s general partner. Both He and Gang previously worked at Huobi, where they first invested funds from managers such as Multicoin Capital, Dragonfly Capital as well as 1kh.

“By combining my experience with [Gan’s]we do have a spectrum of CeFi, TradFi and DeFi experience that provides a great understanding of institutional money and their space needs,” he said.

A few months ago, the firm raised $50 million for its flagship OP Ventures Fund, backed by Alan HowardBill Ackman along with crypto-native institutions such as Brands AnimokDigital Currency Group and Galaxy Digital.

“Ultimately, we are in a state where a lot of institutional investors don’t know where to leave their money, and this vehicle-like safe haven is letting people in,” Gan said. “We are only looking for first-time VC investing managers, so this is a longer term horizon and they know that over a longer period of time, this is a really good sector to actively roll out VC investments with more reasonable valuations.”

The firm plans to roll out the new fund within a few years, Gan said. “We want to have even exposure in bull and bear markets so that there are good investments in both cycles.”


Credit: techcrunch.com /

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