Previously, the firm was among the investors who contributed to the $115 million fundraising conducted by Worldcoin.
Bain Capital Crypto, a purpose-built investment company, has filed with the United States Securities and Exchange Commission (SEC) to roll out a second investment fund to support promising companies and startups in the industry.
The move comes after the successful distribution of its first fund launched in 2022, before the catastrophic collapse of the Terra (LUNA) blockchain, which wiped out billions of dollars in the market as investors watched their assets vanish into thin air.
Bain unveiled the $560 million investment fund co-led by Stefan Cohen and Alex Evans in March of 2022. So far, the company has used $100 million from the fund to support different companies by participating in funding rounds starting from the time of launch until the end of last year.
Investing in Early Stage Companies
The firm was among the investors who contributed to the $115 million fundraising conducted by Worldcoin. Bain also participated in funding rounds for privacy protocol Nocturne Labs , decentralized exchange aggregator Flood and Apollo.io.
The first investment fund primarily focused on investing in early-stage financial rounds and liquid tokens in both the world of decentralized finance (DeFi) ecosystem and the Web3 economy.
However, for the second fund, the company has yet to disclose the areas it plans to focus on. The filing, while still awaiting SEC’s review and approval, did not state the amount Bain plans to launch for investments.
Despite the lack of information regarding the amount Bain plans to release for its second blockchain investment fund, the company is not the only financial institution to roll out funds dedicated to investments in the crypto economy.
Expanding Crypto Investment Landscape
Companies like Sequoia Capital have entered the crypto investment landscape with the launch of a blockchain fund named The Sequoia Crypto Fund.
Through this fund, the company invested in the now-defunct exchange FTX, which suffered a financial crisis in 2022, and blockchain infrastructure provider FireBlocks.
In November 2023, Lightspeed Faction, a blockchain-focused investment company, announced that it would roll out a $285 million fund that would only invest in promising projects in their early stages.
That same year, Blockchain Capital, another investment firm in the industry raised $580 million for two new funds.
The company, which has $2 billion in assets under management as of September last year, said it would use the funds to support startups in the crypto industry in areas such as decentralized finance, gaming, and infrastructure.
Also during that period, Nym Technologies raised $300 million from venture capital (VC) companies in the industry to launch an investment fund.
According to the announcement, the company planned to provide capital to software developers building projects in the area of privacy and other important sectors aimed at improving the emerging economy.
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