Business & Finance

Singapore’s Golden Gate Ventures Launched a $10 Million Fund for Crypto-Based Startups

A Singaporean venture capital firm named Golden Gate Ventures launched a fund that amounts up to $10 million as reported on the 10th of August. This fund is dedicated for companies that work on blockchain and cryptocurrencies. The fund is called LuneX Ventures.

Golden Gate Ventures is an early-stage venture capital firm. Headquartered in Singapore, the firm has made investments in over 30 companies across the globe. Golden Gate Ventures invests in internet and mobile startups in the sector of e-commerce, payments, marketplaces, mobile applications and SaaS, Software-as-a-Service platform. With the new announcement of the LuneX Ventures, the firm is now also investing in blockchain and cryptocurrencies related companies.

The former Head of Growth of Golden Gate Ventures, Kenrick Drijkoningen and the venture capital firm have partnered for the LuneX Ventures. The fund will be run by Kenrick Drijkoningen who will have Tushar Aggarwal, famous for running blockchain podcast “Decrypt Asia”, as an associate. They will be accompanied by a support team which will be backed up by the Golden Gate Venture’s back office team.

The LuneX fund is directed towards early startups which are to provide blockchain and cryptocurrencies based services for example, cryptocurrency exchange and security provision. The fund amount will be equally divided for token sales, purchase of existing tokens and equity based investments. Drijkoningen says he is interested in “infrastructure” businesses, such as solutions for token custody, banking and more for equity funds. The fund is currently being raised in fiat, however the governing body is considering bitcoin, ether and other altcoins for raising it.

The recipients of the investment via this fund are not limited to Singapore or Southeast Asia. The fund is intended to make investments in companies throughout the world. Regarding the receivers of the fund, the company stated:

“Qualities favoured include scalable infrastructure and interoperability, along with practical solutions to issues such as custody and security, and institutional services that will drive the next wave of adoption,”

Drijkoningen also expressed: “There’s a lot of crypto funds but most of them are hedge funds.” Whereas the LuneX Ventures aims to take a long term approach towards investments.

The fund amounts to U.S. $10 million for which the 5 to 10 investments have already been made. In e27’s report, Drijkoningen is said to have said:

“Targeted size of the fund is US$10 million with a final close to happen within this year. We have a strong pipeline of five to 10 investments ready to go and made our first commitment to Singapore-based Sparrow Exchange already.”

According to Drijkoningen, investors in the fund will include high net worth individuals, hedge fund managers and family offices. The investors will be people who understand or are interested in crypto since there had been an interest from projects that raised significant capital from ICOs.

Drijkoningen also said:

“We view blockchain as a foundational technology, on a par with or possibly exceeding the internet in disruptive potential. Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing,”

And further mentioning that blockchain startup founders are seeking a specialised fund that provides them with access and expertise, which the usual venture capital funds “have trouble to provide.”

He explained:

“Traditional investors currently struggle to access this new asset class: there are legal, custodian, banking, tax, and other operating obstacles to overcome. LuneX Ventures has been been built from the ground up to address all these. We have gone the extra mile to make sure the fund is fully compliant while providing easy access to accredited investors. Our mandate allows us to invest in tokens of promising startups. For us, it’s important that our interests are aligned with those of founders. In the end this is how we all benefit,”

Qirat Ayaz

Passionate about robots and how the robotics is changing everything around us. Writes about startups in the blockchain space. Contact the editor at editor.startups@blockpublisher.com

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