Pantera Capital plans to raise $600 million for its new fund, making it second only to a16z
The launch of this new fund will increase Pantera's total assets under management by approximately 12%.Author: Richard Lee
At the investor conference held on September 7, Dan Morehead, CEO of the renowned crypto venture capital firm Pantera Capital, announced the upcoming launch of a new blockchain fund, aiming to raise $600 million. According to KITCO, Pantera completed the first closing of the new fund in June, with a fundraising progress of $375 million, and plans to complete this round of fundraising before the end of the first fiscal quarter next year.
Pantera launched the first cryptocurrency fund in the U.S. in 2013 and has since invested in over 80 blockchain companies and 65 early token trades, with assets totaling $4.7 billion. Pantera's official website shows that it was an early investor in institutions or projects such as Coinbase, Polkadot, Ripple, FTX, and 1inch. The launch of this new fund will increase Pantera's total assets under management by approximately 12%.
Pantera Capital is known for its transparency and substantial returns. According to the investment performance report released earlier this year, its ICO fund achieved a return of 504%, the Bitcoin fund returned 299%, and the digital asset fund returned 291%.
According to reports, similar to Pantera's previous portfolio, the new fund will invest in risk equity (40-50%), early tokens (30-40%), and tradable liquidity tokens, such as Bitcoin and Ethereum. It is reported that Pantera will adopt a mixed strategy using the aforementioned three investment approaches.
For the risk equity investment portion, Pantera will invest in seed rounds, Series A, and some growth rounds for companies building blockchain infrastructure, tools, payments, and other products and services, with investment sizes ranging from $1 million to $15 million.
In terms of early tokens, Pantera plans to focus on investing in DeFi-related tokens, buying tokens below their market launch price.
For liquidity token investments, Pantera will use an "active management" approach for digital assets that are already circulating in the market. Pantera CEO Dan Morehead stated that the fund will "take advantage of the fluctuations in value between tokens and risks," buying when prices are low and selling at a premium when prices are high, with the proceeds used to invest in less liquid assets.
In addition to Pantera Capital, several crypto venture capital funds have launched new funds worth hundreds of millions in recent months, such as a16z, Hashed, 1confirmation, Blockchain Capital, and Framework Ventures. Notably, a16z announced in June this year that it raised $2.2 billion for its third crypto fund, making it the largest fund in the current crypto venture capital industry, with Pantera Capital's fundraising scale being second only to a16z.
