Bain Capital Ventures launches $560M Crypto Bet Fund

Bain Capital Ventures launches $560M fund 

Bain Capital Ventures doubles down as funding pours into the crypto space. 

The investment giant will launch a $560million fund called BCV Fund I, which will only focus on the asset class. Bain Capital Crypto managing Partner Stefan Cohen said that the fund closed in November with $100m invested in 12 projects. Bloomberg In an interview, he announced the launch.

Bain Capital Ventures has been involved in this space for many years. Its investments include the BlockFi, Digital Currency Group and the Ethereum-native DeFi staple Compound. However, until now, it’s never run a fund that exclusively invests in the digital assets space. 

“We’ve become quite high conviction we are at the beginning of a multi-decade technology shift,” Cohen told BloombergThis sentiment is in line with the sentiments of many Silicon Valley giants who have been Web3-curious for the past few months. Cohen stated that this conviction is what prompted Bain Capital Crypto to be launched. 

Bain plans on using the fund to support a wide range of projects in blockchain technology including startups, DAOs alternative Layer 1 networks and infrastructure. Over the next two- to three years, $560 million will likely go to approximately 30 companies. Bain plans to participate in governance and provide liquidity, similar to Sequoia Capital’s $600 million fund launch. 

Bain’s fund launch comes during a rocky period in the crypto market. The global cryptocurrency market cap is 40% short of its November 2021 peak, with uncertainty over the Federal Reserve’s planned rate hikes, an upcoming Executive Order from President Biden, and the Russia-Ukraine conflict bringing sentiment to lows not seen since the market-wide May 2021 crash. 

Despite recent macroeconomic turmoil, it has not stopped the flow of capital from venture funds into the space. Bain, which is the latest venture firm to jump on the bandwagon after Sequoia and Andreessen Horowitz, has a huge bet. 

 

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