Bain Capital Ventures establishes a $500 million fund for cryptocurrency projects

In 2021, venture capital investment in cryptocurrency ventures will exceed $25 billion, surpassing the sum of the previous ten years.

Bain Capital Ventures, one of the world’s top venture capital firms with $5.1 billion in assets under management, announced the launch of a new $560 million cryptocurrency fund.

The fund closed in November, according to a March 8 Bloomberg story, and it has already invested $100 million in 12 unidentified projects.

Bain Capital Ventures has a track record of investing in the cryptocurrency and blockchain space, having previously supported BlockFi, Compound, and Digital Currency Group. Bain Capital Ventures’ most recent fund, BCV Fund I, is the first of its type, focusing exclusively on the cryptocurrency sector.

The current development comes on the heels of a surge in venture capital interest in crypto in 2021. According to Pitchbook data, venture capital investment in cryptocurrency ventures reached a record high of $25 billion last year, the greatest sum ever recorded.

Although crypto asset prices remain very volatile in 2022, venture capital firms have continued to make significant investments in the area. Sequoia Capital, an American venture capital firm, announced the formation of a $600 million cryptocurrency fund in February. Polygon raised $450 million in a funding round led by several of the blockchain industry’s leading venture capital firms.

The bitcoin market is currently in a bear market. Bitcoin’s (BTC) price has fallen about 40% since its all-time high in early November, as concerns grow about the Federal Reserve’s monetary measures to address growing costs and geopolitical tensions.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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