Tribe Capital Launches $100 Million Crypto Fund Targeting Layer 1, 2, and DeFi Projects – Bull Market Back?
Venture capital firm, Tribe Capital, has launched a new crypto fund to raise $100 million.
The tribe plans to channel the funds into early-stage layer 1 and 2 ecosystems and DeFi projects.
The San Francisco-based company with $1.6 billion in assets under management will invest $500,000-$3 million in these projects to bring real-world assets on-chain.
This development comes amid a drastic plunge in venture capital investment value in the crypto and blockchain ecosystem.
Tribe Capital had previously backed cryptocurrency firms such as FTX, Kraken, and Bitfinex in 2021 during the bull market.
In May 2021, Kraken added Tribe's co-founder and partner, Arjun Sethi, to its board.
At the time, Kraken was eyeing over $20 billion in funding, and Tribe spending $120 million in primary and secondary equity, became its second-largest investor.
The tribe had invested in FTX before its collapse. And in April 2023, it considered leading a $250 million fundraising to revive the crypto exchange.
In the latest development, Tribe Captial wants to help bolster growth in DeFi projects and protocols that could provide security, scalability, liquidity, and cross-chain interoperability.
This initiative will boost user confidence in crypto, thus driving mainstream adoption.
The current fund, dubbed the "Digital Future Fund I," follows the firm's previous crypto fundraising in October 2021, when it raised $75 million.
This development comes amid declining VC funding in crypto due to the prolonged bear market.
According to reports, VC funding dropped by 91% in January 2022.
The VC investments in private crypto startups for January were $548 million, a massive decline from the $6 billion recorded in January 2022.
The number of deals, majorly for smaller
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