Altcoin News: Pantera Capital Has Already Received the Bulk of Funding for Its Third Cryptocurrency Fund

February 23, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Investment firm Pantera Capital received $125 million for its third cryptocurrency fund, the size of which is planned to increase to $175 million.

According to the information received, at the moment $125 million was invested in the fund. In August last year, the company announced that it had raised $71.44 million from 90 investors.

“We’re in a bear market and fundraising has slowed for the entire industry, whether you’re an entrepreneur or a fund,” Pantera partner Paul Veradittikit told CoinDesk. He said Pantera’s initial fundraising had come from high net-worth individuals, family offices and others that could money move quickly.

According to him, the initial fundraising took place with the participation of wealthy people, family investment firms and others who could quickly transfer money. Nevertheless, Veradittikit is optimistic about the closure of the last fund transaction, which is scheduled for March this year.

Veradittikit said also that Pantera also “holds many meetings” with a new category of sponsors: institutional investors, such as charitable foundations and even pension funds. He expects that there will be larger investments ahead, but it will take more time.

The new fund will “invest in the later stages of development to support more mature companies” than the firm’s past funds focused on investing in startups. Veradittakit says that this approach will allow the firm to play a more active role in the development of growing companies, including taking seats on the board of directors. “This is exactly what we want to do,” he said.

Half of the capital in the fund will be reserved for subsequent financing in order to make investments in the amount of 3 to 8 million dollars to participate in the share capital of up to 15%. At the initial stage, the fund will direct investments in the amount of from 1 to 3 million dollars with 10–20% participation shares. The previous two Pantera funds invested in 44 companies. According to forecasts, the new fund will support from 30 to 50 companies.

Last year, it was reported that Pantera Capital’s revenues from investments in cryptocurrency exceeded 10,000% over the past five years. The company is known for its investments in cryptocurrency exchanges such as Bitstamp, Korbit and Shapeshift, as well as in blockchain startups, including Ripple and Circle.

Author: Marko Vidrih