To expand the blockchain ecosystem, UAE-based venture capital firm Cypher Capital has launched a $100 million seed fund with a special interest in digital asset investments.
The fund to be financed by Bijan Alizadeh, the firm’s founder, will be pumped into projects in decentralized finance (DeFi), metaverse, and blockchain gaming sectors.
Cypher Capital plans to create a holistic blockchain community by collaborating with outstanding talent, visionary innovators, and other venture capital partners to make a significant difference.
“We will collaborate closely with our portfolio projects, offering them access to our network and equipping them with our knowledge, as well as investing alongside other venture capital partners into innovative blockchain, crypto, and digital asset projects.”
With an assets under management (AUM) portfolio of $10 million, Cypher Capital plans to roll out between $2 million and $5 million on average each month with initial investments in South Asia, North Africa, and the Middle East regions.
Vineet Budki, a managing partner at Cypher Capital, stated:
“We have the knowledge and expertise to mentor projects and entrepreneurs and equip them with the tools they need for success. At the moment, we are especially interested in projects in the DeFi, GameFi, and metaverse space, but we are always on the lookout for innovative blockchain projects in general.”
The firm also intends to create a digital asset, blockchain, and crypto hub to connect startups with potential investors.
Earlier this week, Bridgewater Associates, the world’s largest hedge fund, announced plans to back a crypto fund for the first time.
Venture funding, including pre-seed and seed, has hit $3.4 billion so far this year, according to Crunchbase data. This sector has experienced significant growth, given that crypto companies raised $34 billion in 2021, per a PWC report.
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