Castle Island Venture Capital has raised $250 million to fund startups using cryptocurrency technology.
Digital Asset Firm Announces New Crypto Fund
Bloomberg reported that Castle Island Ventures (a U.S.-based digital asset and blockchain-powered business) has raised $250 million. The funds will be used to create a new product to help emerging crypto companies.
According to reports, two Fidelity Investment alumni are leading the Boston-based company. They are Nic Carter and Matt Walsh. Castle Island has raised more than $300 million for crypto startups since its launch in 2018.
The firm launched a $50 million fund in February 2021 to invest in stablecoin and decentralization finance solutions. Castle Venture had previously announced a $30 million fund to support tools that are focused on bitcoin.
The firm also invested previously in companies such as Bitwise, BlockFi and River Financial, a crypto index fund manager, to name just a few.
Castle Island Ventures III is the name of the new fund. It will invest in crypto startups that create transformative tools using blockchain technology. The fund covers three major categories. These areas include financial services, monetary networks and web architecture.
Matt Walsh, co-founding member of the fund’s launch, said:
The market opportunity is growing and so are the number of entrepreneurs who are actually starting businesses. We have reacted to this explosion by building our team and giving ourselves the ability to deploy capital in these companies more aggressively.
Castle Venture announced the substantial raise and also promoted Ria Bhutoria, former director of research at Fidelity, to general partner. In the next few months, the company plans to expand its team and launch more Series A funding rounds.
Institutional Investors flock to the Crypto Industry
Despite market volatility, crackdowns by certain jurisdictions on digital currency, institutional investors continue to show interest. Venture capitalists view the growing crypto industry as an attractive investment vehicle. CNBC reported that VCs invested over $4 billion in blockchain-powered startups during Q2 2021.
CryptoPotato reported previously that Blockchain Capital (a major investor in distributed ledger technology) raised $300 million through a round of funding led by Visa and PayPal.
Additionally, Andreessen Horowitz, a VC heavyweight, announced plans to launch a cryptocurrency fund worth $2.2 billion last year.
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