Crypto-Focused VC Lightspeed Faction Announces $285 Million Fund for Startups
Lightspeed Faction, a blockchain-focused venture capital (VC) firm, has revealed plans to launch a new $285 million fund aimed at investing in early-stage projects within the crypto industry.
The VC, consisting of team members from prominent entities including Amber Group, Blockchain.com, and Coinbase, intends to provide “crypto-native” advice and support to the startups it backs, according to a Thursday press release.
The firm believes its services are particularly crucial at a time when many industry experts have exited the space.
“Faction offers founders access to a team of experienced blockchain investors and operators, servicing the industry at a time when many have fled,” the firm said.
“The team is primed to provide crypto-native advice, with team members hailing from.”
The announcement of the new fund comes as the crypto sector experiences renewed optimism following an extended bear market.
Market participants are increasingly hopeful about the approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
The sentiment is reflected in recent fundraising activities, such as Blockchain Capital’s successful raise of $580 million for two new funds.
Additionally, Nym Technologies secured $300 million from venture capital firms to support crypto builders, developers, and communities, with a specific focus on privacy.
As a joint venture with Lightspeed Venture Partners, a VC firm managing assets worth $25 billion, Lightspeed Faction typically invests in seed-stage and Series A funding rounds.
The firm has already made investments in several notable projects, including Crossmint, Lens, Narya.ai, Skip.money, and Matter Labs, the team responsible for developing the zkSync layer-2
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