Felix Capital gets $600 million for a new fund
Felix Capital, a London-based consumer-focused venture investor, has raised $600 million for its fourth fund.
Why it matters: Felix Capital is diving deeper into crypto with this new fund, which shows that more traditional investors are using novel ways to dip their toes in the space.
Background: With a preference for leading rounds in early-stage companies, Felix Capital does have the ability to selectively invest in growth-stage businesses. It's been using that ability to invest in growth-stage crypto companies, jumping in the backseat to learn about the space and while taking on less risk.
- "We really want to do this in collaboration with specialist funds," founder Frederic Court says. "We see ourselves as more of a complementary investor."
- Last year, the firm made its first-ever investment in a crypto business, participating in Ledger's $380 million Series C round of funding — a decidedly not early-stage bet. It also participated in a $680 million round for Sorare.
- Felix Capital, though, has also made one early-stage crypto bet, in Lightspark, a company co-founded by one of Diem's founders, David Marcus. But, again, it did not lead the investment.
- "We are expanding our areas of focus to include web3," Court says.
Context: Having now raised $1.2 billion across all of its funds, Felix Capital has placed most of it bets on consumer-focused companies, like Deliveroo, Goop, Houzz and Oatly.
- Court says he sees Felix Capital's consumer know-how as a benefit to more technical crypto-focused funds, while technical funds can help fill in gaps in Felix Capital's own knowledge around crypto.
- Eventually, says Court, the fund might take leading roles in crypto companies.
The big picture: Felix Capital is diving deeper into crypto, but it's not a "crypto investor" in the sense that the majority of the fund is unlikely to be focused on the space, he adds.
💭 Thought bubble: Exposure to crypto for traditional funds is now a diversification strategy, but also a hedge against missing out on the crypto's upsurge.