Coinfund raises $300 million for new crypto fund

CoinFund has raised $300 million for its latest fund focused on early-stage startups in the crypto space.

Why it matters: CoinFund has historically focused heavily on finding companies in the seed stage. This new fund — dubbed Ventures I — will focus on Series A rounds, filling what the firm sees as a major gap that has developed in the market.

Driving the news: "There's actually not that many crypto native firms that lead series A rounds," says David Pakman, managing partner at the firm. "There's lots of seed funds, and there were a bunch of Series A funds, but they got so big that they now write $50 million to $100 million checks."

• Of course, $1 billion-plus funds like Andreessen Horowitz do invest in Series A deals, but Pakman says many are not "purpose-built" for a company that is just beginning to find product-market fit.
• "We try to right-size our check for the stage appropriately," Pakman says.
• He adds that the $300 million fund size — while small in comparison to some recent raises — was exactly what CoinFund set out to raise.

Details: Although its seed checks are typically in the $1 million to $2 million range, the new fund will seek to lead rounds and take board seats with $6 million to $10 million checks.

• CoinFund is a registered investment adviser, allowing the fund to invest a significant amount in tokens alongside equity.
• Portfolio investments from its previous fund include Blockdaemon, the Near Protocol and Dapper.

Of note: Limited partners in the fund include Teacher Retirement System of Texas, Adams Street Partners, StepStone Group and Accolade Partners, signaling continued interest in the crypto space among more traditional investors despite the downturn.

• Venrock, Pakman's previous employer and an investor in previous CoinFund vehicles, is also in Ventures I.