Reddit co-founder Alexis Ohanian’s VC Will Establish Crypto IF

Reddit co-founder Alexis Ohanian’s venture capital (VC) firm Seven Seven Six (776) is aiming to establish a $177.6 million crypto investment fund, while current and former executives from Galaxy Digital and Genesis are looking to build a $500 million fund.

776’s Crypto Play

The Information said on August 29 that 776’s fund “Kryptos” will start in October to advantage on the current downturn market. It stressed that there are now some bargain bin token reductions on the market that are waiting to be taken advantage of. Reddit co-founder Alexis Ohanian’s venture capital (VC) firm will establish the fund along with other investors and is expected to provide much-needed liquidity to the market.

“This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale,” said Katelin Holloway, Founding Partner at Seven Seven Six.

In April, the business qualified with the Securities and Exchange Commission (SEC) to become an investment advisor, allowing it to invest in cryptocurrency and manage cryptocurrency investment funds.

While 776 has previously invested in a number of crypto/blockchain startups, this will be the firm’s first fund completely focused on crypto assets. It will charge investors a relatively high 2.5% management fee and provide a 25% profit-sharing scheme.

On its website, 776 claims that among of the companies in its investment portfolio include Yuga Labs, the company behind Bored Ape Yacht Club, the Doodles NFT project, the Forgotten Runes Wizard’s Cult, a Web3 fantasy series, and QuickNode, a blockchain API and node infrastructure firm.

Galaxy And Genesis

The DBA Crypto Fund I, LP is a $500 million fund run by current and former Galaxy and Genesis executives, according to an August 26 Form D filing with the SEC.

The fund’s details are few at this point, with the consortium saying that it would be a pooled investment fund and a private equity fund.

So yet, the only indicators of securities provided are “pooled investment fund “interests” and “other.”

The fund’s executives include Michael Jordan, vice president of investments at Galaxy Digital, Joshua Lim, head of derivatives at Genesis, and Roshun Patel, former vice president of trading at Genesis. Shane Barratt, the CEO and founder of trading business Convex Optimization Group, completes the roster of management members.

These crypto funds aren’t the only ones with big names behind them, with Cointelegraph announcing on Aug. 25 that Polygon creator Sandeep Nailwal had secured $50 million for a new startup fund targeted at Web3 enterprises.

A week earlier, CoinFund also unveiled a $300 million early-stage Web3 venture fund to finance investments in cryptocurrency and other blockchain-related industries.

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