Venture capital firm Lightspeed Faction has introduced a $285 million fund dedicated to crypto startups, as announced on November 9. According to the announcement, the fund will specifically target “early-stage blockchain projects” and extend capital support as these initiatives expand.
Lightspeed Faction emphasised its capability to offer founders access to a team of seasoned blockchain investors and operators, including individuals from the Amber Group, Blockchain.com, and Coinbase teams. The firm operates as a joint venture, merging the traditional tech-oriented Lightspeed Venture Partners with the crypto-exclusive Faction fund, aiming to leverage the combined expertise of both entities for maximum success.
Banafsheh Fathieh, the co-founder of Lightspeed Faction, asserted the necessity of the $285 million fund to support the numerous promising blockchain projects emerging daily, stating:
“[C]rypto is a generation-defining technology, and we are fully committed to investing behind the best entrepreneurs looking to propel blockchain technology forward. The blockchain ecosystem is full of promising projects looking to disrupt everything from financial systems to telecommunication.”
The announcement highlighted Lightspeed Faction’s past successes in funding several blockchain startups during the bear market, including Crossmint, Lens, Narya.ai, Skip.money, Matter Labs, and others. The firm typically engages during seed and Series A rounds.
Despite a drop in crypto venture capital funding to a three-year low in the third quarter of 2023, attributed to low crypto prices and diminished media attention compared to the bullish trend in 2021, Lightspeed Faction’s initiative signifies ongoing confidence in the potential of select projects, demonstrating that some ventures still manage substantial fundraising even amid reduced funding levels.