Inception Capital closes $30M fund, targeting early-stage crypto ventures
Inception Capital, formerly known as OP Crypto, has announced the successful closing of its inaugural fund at $30 million. David Gan, the founder and general partner of the firm, exclusively shared this news with TechCrunch. The fund, called OP Fund of Funds I LP, was specifically designed to target family offices and high-net-worth individuals seeking diversified exposure to early-stage crypto venture deals. Notable investors in this fund include Mirana, FJ Labs, and Serafund. Gan stated that this vehicle provides a hedge and risk-adjusted downside protection for those looking to gain exposure to the crypto space.
Diversified exposure to crypto ventures: Inception Capital’s unique approach
Inception Capital’s approach is different from other firms in the crypto venture space. Instead of investing directly in projects, protocols, or startups, the firm plans to invest in five new investment managers and funds annually. By doing so, they aim to create a diversified portfolio of investments that these funds are involved in. Gan believes that this strategy offers a more well-rounded exposure to the crypto market and reduces the risk associated with investing in individual projects.
Inception Capital’s flagship vehicle focuses on up-and-coming talent
A notable feature of Inception Capital’s investment strategy is its focus on investing in up-and-coming talent in the crypto space. Gan believes that this is an opportune time to invest early and support entrepreneurs who are hungry to make an impact. By spotting promising talent at an early stage, Inception Capital hopes to not only generate significant returns but also contribute to the growth and development of the crypto industry as a whole.
Inception Capital invests in five emerging managers in crypto venture space
Inception Capital has already made strategic investments in five emerging managers in the crypto venture space. These managers include Syncracy Capital, Escape Velocity, Alliance, OrangeDAO, and Everyrealm. In addition to these investments, Inception Capital has also co-invested alongside prominent names such as Bain Capital Ventures, ParaFi Capital, Multicoin Capital, and a16z’s Marc Andressen and Chris Dixon. It is worth noting that Inception Capital has a general partner stake in the first two listed managers.
Opportunities for crypto Fund of Funds to attract institutional investors
While the Fund of Fund (FoF) space is well-established in traditional finance, it is still relatively small in the crypto sector. David Gan sees this as an opportunity for growth, stating that there is significant potential for managers in the crypto venture space to attract sovereign wealth funds, endowments, pension funds, and institutional FoFs. By doing so, the crypto industry can find greater acceptance and recognition among mainstream institutional investors, further accelerating its growth and development. Gan believes that the crypto venture space can eventually match the traditional market in terms of attracting institutional capital.
Analyst comment
Positive news: Inception Capital closes $30M fund, targeting early-stage crypto ventures
Market Impact: This news is positive for the crypto market as it highlights the growing interest and investment in early-stage crypto ventures. It also suggests that there is potential for increased institutional involvement in the crypto space. This could lead to more capital inflows and further growth and development of the market.
