The crypto asset management company, NYDIG, has announced the launch of its second venture capital fund, called Digital Assets Fund II. The NYDIG has received $100 million in funding from one individual. The funds are intended to invest in digital assets across several different categories including blockchain technology, security tokens, and decentralized applications.
The fund will be managed by a team led by CEO David Edery. He is also the founder of NYDIG. According to him, the firm’s first fund was launched in 2017 with an initial investment of $50 million. It was followed by another $50 million raised in 2018. This brings the total amount invested in the firm to $100 million.
The new fund will focus on investing in projects that have potential for growth. Some of these include companies working on the development of blockchain solutions, as well as those focused on developing decentralized applications (dApps). The firm plans to use this money to acquire stakes in such startups.
Edery says: “We believe there is significant upside for investors who can identify and support early-stage companies with strong teams and products. We look forward to supporting our portfolio companies as they continue their journeys towards success.”
NYDIG is not the only firm to receive investments from one person. In March, Coinbase Ventures, which is part of the San Francisco-based cryptocurrency exchange, raised over $300 million from institutional investor Tim Draper.
Liberty Mutual, Starr Join Bitcoin Investment Firm’s $100M Funding Round
NYDIG, a San Francisco-based startup that provides technology and financial services to businesses interested in blockchain and cryptocurrency, announced today it had raised $100 million in Series B financing led by Insight Venture Partners. Existing investors Andreessen Horowitz, General Catalyst, Ribbit Capital, RRE Ventures, Union Square Ventures, and Y Combinator also participated in the round.
Insight Venture Partner Adam Draper previously invested in Coinbase and Robinhood. “We see tremendous potential in the crypto space and believe NYDIG is well positioned to capitalize on this opportunity,” he said. “They are already disrupting the traditional insurance market with innovative technology and we look forward to supporting their continued success.”
NYDIG’s founders include Robert Gutmann, founder and CEO; Michael Arrington, founder and partner at TechCrunch; and Jason Goldberg, founder and chief executive officer of CoinDesk.
Gutmann said: “This is the largest single equity raise ever done in the crypto space. Our goal is to build a platform that enables anyone to access the benefits of cryptocurrencies without having to own them.”
The company’s existing customers include Fortune 500 companies like IBM, Cisco Systems, and Accenture. Its clients include more than 50 percent of Fortune 1000 companies.
$150M In Just Two Crypto Investment Funds
The New York-based digital assets firm revealed today that it raised $100m (£75m; €85m) from only one investor on its recently announced project Digital Assets 2 Fund II.
According to the filing, the fund was launched in January 2020 and plans to invest mainly in cryptocurrencies such as bitcoin and ethereum.
The newly launched fund comes after the firm’s predecessor Digital Assets Fund I, raising $50m (£37m; €42m) in November 2018.
The amount has been reportedly collected solely from two investors and will be invested mainly in cryptocurrency.
With the launch of the second fund, the firm now boasts over $250m ($200m; £170m; €190m) under management.
Another Publicly-Owned Company to Own a Big Pile of Bitcoin
The crypto world just got even bigger. On October 11th, 2018, New York-based asset management firm Stone Ridge Capital announced it had purchased over 10,000 bitcoins valued at roughly $110 million USD. This makes Stone Ridge the second publicly traded company to buy into cryptocurrencies, following the announcement of Nasdaq listing of bitcoin futures earlier this month.
Stone Ridge Capital co-founder and CEO Robert Gutmann told CNBC that his firm wanted to become “one of the leading providers of institutional-grade solutions for the custody and trading of digital currencies.” The company already offers several products related to Bitcoin, including a custodial wallet, a brokerage product, and a margin lending platform.
Gutmann said that while the company has been investing in Bitcoin since 2013, the recent price spike has made it a good time to expand its portfolio.
He went on to say that the company has always considered Bitcoin to be a “primary reserve asset,” adding that “we think there are many reasons why we believe it will continue to grow in value.”
In addition to being used as a store of value, Gutmann believes that Bitcoin could eventually replace fiat money due to its decentralized nature.
“We see ourselves as being positioned to provide the best solutions for institutions, whether it’s hedge funds, pensions, endowments — any institution that needs access to digital currency,” he said.