Kraken Ventures Prepares Second Fund as Crypto and Blockchain Startup Activity Picks Up

Kraken Ventures, a leading Web3 venture firm anchored by the popular cryptocurrency exchange Kraken, is gearing up for the launch of its second fund as VC activity in the crypto and blockchain space begins to pick up.

Brandon Gath, the head of Kraken Ventures, has noted a resurgence in funding and valuations for cryptocurrency and Web3 startups in recent months. Despite a significant downturn in the past 18 months, Gath believes that the industry is now on an upward trajectory.

“In the last six months, we’ve really begun seeing things take off again,” Gath shared with Global Corporate Venturing. “There’s been big excitement around certain rounds, rounds have been oversubscribed and valuations are coming back up.”

Gath draws parallels between the adoption of Web3 technologies and the growth of the internet, highlighting a trend towards global coverage despite periods of hype and setbacks.

Kraken Ventures focuses on early-stage investments in the core infrastructure of Web3, including crypto, blockchain, NFTs, and decentralized finance. The firm provides up to $2 million per deal and has already built a portfolio of over 40 startups.

As the industry continues to rebound, Gath sees a growing interest in payment, remittances, and stablecoin technology among Web3 investors. Companies are also incorporating blockchain technology into more consumer-friendly applications, expanding the reach and impact of the technology.

Looking ahead, Kraken Ventures is preparing to launch its second fund, with reports suggesting a target of $100 million. While Gath remains tight-lipped about specific details, he confirms that the firm has been working on the fund for several months and expects to make progress in the second half of the year.

With a focus on supporting existing portfolio companies and helping them scale in 2024, Kraken Ventures is poised to continue driving innovation and growth in the Web3 ecosystem. As the industry evolves, the firm remains committed to investing in groundbreaking startups that are shaping the future of finance and technology.