According to reports, Pantera Capital a crypto-focused venture company has secured $175 million funds for its third crypto fund. The fundraising took placed unexpectedly before the March closing. It has been reported that $125 million is focused on the company’s third fund. The company, nevertheless, secured only $25 million since August 2018, when Pantera informed CNBC of having raised $100 million.
Paul Veradittikit, Pantera partner in an interview with CoinDesk said that the company is facing tough time owing as the fundraising has slowed down in the entire industry affecting companies as well as investors. The initial fundraising of the company was in fact supported by high net-worth individual investors, as well as family offices and others capable of moving money quickly.
Paul, however, is optimistic of the closing as he informed that the company is in talks with a number of investors including institutional investors and pension funds. He expects greater financial support from these investors in the future rather than from the traditional supports of the company.
The latest funds thus raised would be invested in the future stage rounds to back up certain mature companies rather than investing in the startup funds, as informed by the company in a slide deck. This would allow the company to play an active role in emerging firms. This is the kind of situation the company has always desired to be in, added Paul.
The company intends to reserve half of the capital in the fund for follow-on funding as the company intends to make investments of $3 million to $8 million against equity stake of around 15 percent. During the seed stage, the fund will be used for an investment of $1 million to $3 million for an equity stake of between 10-20 percent.
The company previously used the funds to invest in as many as 44 companies. The latest fund is expected to support around 30-50 companies, as stated by the company through its pitch deck. The company also intends to hold more of such equity or equity-token hybrid rounds as Paul highlighted a major shift in the equity. The slide deck of the company lists six areas that the company is exploring – commercial, exchanges, custody, institutional tools, marketplaces, infrastructure, and asset management.
The latest invests from the company included automated code checker – Synthetic Minds, proof-of-stake protocols related services provider – Staked, and peer-to-peer marketplace protocol – Origin. The company made an initial close on the fund in June 2018 with the aim to invest in the regulated exchange Bakkt that is being developed by the owners of the New York Stock Exchange.
The slides issued by the company highlights that the company is aiming to finalize the fund in March this year as it is the right time for the company to invest said Paul. He believes that the opportunity is available to invest in companies with great valuations and good teams that are likely to stick for a long time.