Lightspeed Faction has unveiled a $285 million fund earmarked for early-stage investments in blockchain startups, as announced on November 9.
The venture capital firm plans to support promising projects during Seed and Series A rounds, providing funding for scaling as well. Notably, the fund aims to leverage the combined expertise of Lightspeed Venture Partners, a conventional tech-focused fund, and Faction, a crypto-exclusive fund.
The collaboration taps into the experience of key figures from Amber Group, Blockchain.com, and Coinbase to offer founders access to a seasoned team of blockchain investors and operators.
Lightspeed Faction Co-Founder Announces $285M Fund to Support Emerging Blockchain Projects Amid Crypto Industry Challenges
According to Banafsheh Fathieh, co-founder of Lightspeed Faction, the $285 million fund is essential to back the myriad of emerging blockchain projects, considering crypto as a groundbreaking technology. Furthermore, Fathieh emphasized the commitment to invest in entrepreneurs striving to advance blockchain technology.
Additionally, the announcement highlighted Lightspeed Faction’s past success in funding blockchain startups during the bear market, citing examples like Crossmint, Lens, Narya.ai, Skip.money, Matter Labs, among others. Moreover, the fund typically engages in seed and Series A rounds.
Notably, the crypto venture capital landscape experienced a downturn in the third quarter of 2023, reaching a three-year low.
Lightspeed Faction Stays Optimistic Amidst Crypto Market Challenges
Despite lower crypto prices and diminished media attention compared to the bullish 2021 market, Lightspeed Faction remains optimistic about identifying and supporting high-potential projects. Although, some funds appear cautious, there are instances of certain projects securing multi-million dollar raises despite the overall decrease in funding levels.