Crypto Variant Investing: Exploring New Opportunities

Variant is an early-stage venture capital firm investing in crypto networks and platforms building the ownership economy. It is a first-check crypto fund investing in an internet that turns users into owners. Variant was established in Brooklyn, New York, in 2020 and is web3-focused. It offers investors access to a diversified portfolio of unconventional income-generating assets. The fund's primary objective is to provide a high level of current income. Variant is led by an investment team with decades of experience investing in market niches.

Crypto VC funding reached $2.4 billion in the first quarter of 2024

Crypto venture capital (VC) funding reached a total of $2.4 billion in the first quarter of 2024, marking a significant increase from the previous quarter and signalling a potential market revival. This surge in investment comes after three consecutive quarters of decline in the crypto and blockchain industries.

According to data from Galaxy Research, VC funding for crypto startups in Q1 2024 amounted to $2.49 billion across 603 deals, representing a 29% increase in funding and a 68% rise in deal count compared to the previous quarter. This indicates a potential shift in investor sentiment and a growing optimism in the market.

Key deals in this period included investments in Together AI, a decentralised cloud platform that raised $106 million, and EigenLayer, an Ethereum restaking protocol that secured $100 million. These deals highlight the diverse range of sectors within the crypto industry attracting funding.

The rise in VC funding can be attributed to several factors, including legal victories for crypto companies, the introduction of Bitcoin exchange-traded funds (ETFs), and innovations in areas such as restaking, modularity, and layer-2 solutions. Additionally, positive sentiment around DeFi and the approval of Bitcoin ETFs in the US further fuelled the resurgence in investment.

Despite the encouraging signs, it is important to remain cautious as the crypto market is known for its volatility. Regulatory challenges and market fluctuations will continue to be critical factors influencing investment dynamics in the coming quarters.

Crypto startups received $30 billion in funding by 2021

Crypto startups have proven to be a lucrative investment opportunity, with funding pouring into blockchain-related companies in particular. By 2021, crypto startups had received a substantial amount of funding, totalling $30 billion. This influx of capital signalled the growing interest in the crypto industry and the potential it holds for investors.

Variant, a venture capital firm based in Brooklyn, New York, is one such investor. Established in 2020, Variant is an early-stage fund that focuses on investing in crypto networks and platforms, with a particular interest in web3. The firm believes in the idea of an internet that empowers users as owners, and its investments reflect this philosophy.

The crypto market has seen significant growth and interest from institutional investors, with major players recognising the potential of digital currencies and the underlying blockchain technology. This maturity of the market has attracted venture capital firms like Variant, which seek to support innovative startups in the space.

The funding landscape for crypto startups is diverse, with various firms and investors recognising the potential of this nascent industry. While there have been fluctuations in cryptocurrency prices, the overall trend of investment in the space remains positive, indicating the confidence that venture capitalists and investors have in the future of crypto and blockchain technology.

With the continuous development of the crypto industry and the increasing involvement of prominent investors, it is evident that crypto startups have become an attractive prospect for those seeking to capitalise on emerging technologies and innovative business models.

Coinbase Ventures is a prominent crypto VC firm

Coinbase Ventures is not alone in its focus on crypto networks and platforms. Another VC firm, Variant, was established in 2020 in New York, United States. Variant is an early-stage venture firm investing in crypto networks and platforms building what it calls the "Ownership Economy". The firm believes that the next iteration of the internet will turn consumers into owners.

Coinbase Ventures, as a VC firm, is part of a growing trend of investors focusing on the crypto space. These firms are not just investing in cryptocurrencies themselves but also in the underlying blockchain technology and the potential of an internet that turns users into owners. This trend is likely to continue as the crypto industry matures and becomes more integrated with traditional financial systems.

As one of the earliest VC firms in the crypto space, Coinbase Ventures has played a pivotal role in shaping the industry. Their investments have helped numerous seed-stage startups get off the ground, and their success has likely attracted other VC firms to the space. By focusing on seed-stage investments, Coinbase Ventures has been able to identify and support promising projects at an early stage, potentially reaping significant returns as those projects grow and succeed.

Coinbase Ventures' prominence in the crypto VC space is well-established, and they continue to be a key player in driving innovation and growth in the industry. Their investments have likely contributed to the development of new crypto networks and platforms, fostering competition and pushing the boundaries of what is possible in the blockchain domain.

Crypto VC firms are forming strategic alliances with crypto startups

Crypto venture capital (VC) firms are a group of investors who pool their money to invest in crypto projects or companies early on. They carefully review many different projects before investing, determining their viability, growth potential, and return on investment. Most VCs invest in several projects to mitigate risk.

Crypto VC firms provide crucial support to new and upcoming crypto projects, offering financial investment, strategic guidance, and networking opportunities to help turn innovative ideas into successful ventures. They play a key role in shaping the future of how we understand and interact with value.

Variant, a VC firm based in Brooklyn, New York, is one such example. Established in 2020, Variant is an early-stage fund investing in crypto networks and platforms building what it calls the "Ownership Economy". It believes that the next iteration of the internet will turn consumers into owners.

For instance, Lunar Capital, a VC firm, leverages its extensive experience in Web3 marketing to empower crypto projects. Enigma Fund, a Web3 venture capital firm, has been involved in various sectors, including DeFi, DAOs, and NFTs. Draper Associates, a Web3 VC firm, has made significant investments in the crypto and blockchain sectors, including in well-known projects like Bitcoin, Coinbase, and Ethereum.

Crypto VC firms provide support and guidance to crypto startups, helping them navigate the complex world of blockchain and crypto. They offer networking opportunities and industry connections to help startups grow and succeed. These strategic alliances between crypto VC firms and crypto startups are driving innovation, adoption, and growth in the blockchain and digital assets space.

The DeFi space and the non-fungible token (NFT) market are popular areas for venture funds

The decentralized finance (DeFi) space and the non-fungible token (NFT) market are two areas that have been attracting significant attention from venture capital funds and crypto investors alike. Both sectors represent some of the most innovative and promising developments in the blockchain and crypto space, offering a wide range of investment opportunities.

Starting with DeFi, this sector has seen explosive growth in recent years, with the total value locked (TVL) in DeFi protocols surpassing $250 billion at its peak in 2021. DeFi offers a wide range of use cases, including lending, borrowing, decentralized exchanges, stablecoins, and more. Venture funds are particularly interested in this space because it represents a significant shift away from traditional, centralized financial systems towards more open, transparent, and accessible financial infrastructure. By investing in DeFi protocols and platforms, venture funds are betting on the potential for DeFi to disrupt and revolutionize global finance, making financial services more accessible and efficient for everyone.

The NFT market is another area that has captured the interest of venture funds. NFTs are unique digital assets that represent ownership of a particular piece of digital content, such as art, music, in-game items, and even virtual real estate. The NFT market saw unprecedented growth in 2021, with sales volumes reaching billions of dollars. Venture funds are attracted to this space because NFTs have the potential to revolutionize digital ownership, creativity, and monetization. NFTs offer a way for artists, creators, and developers to monetize their digital content and build new business models, while also providing a way for fans and collectors to own and trade unique digital assets.

Venture funds are investing in a range of NFT-related projects, including NFT marketplaces, gaming and metaverse platforms, and infrastructure providers. They are also backing NFT-focused creator economies and supporting the development of new NFT standards and technologies. By investing in the DeFi space and the NFT market, venture funds are not only backing innovative and disruptive technologies but also helping to shape the future of finance and digital ownership. These investments carry a certain level of risk due to the volatility and regulatory uncertainty surrounding the crypto space. However, the potential rewards are significant, and the involvement of venture capital funds is helping to drive mainstream adoption and bring more institutional capital into the crypto ecosystem.

Overall, the DeFi and NFT spaces represent some of the most exciting and promising opportunities in the crypto market, and it is no surprise that venture funds are paying close attention to these sectors. Investors and funds are likely to continue allocating capital to these areas, driving further innovation and growth in the coming years.

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