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776 Management raises $500 million to double down on crypto

Updated: Jul 30, 2024
Published: Feb 1, 2022
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Alexis Ohanian's venture firm 776 Management LLC has raised $500 million for two new funds that will invest primarily in crypto start-ups.

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776 Management is interested in crypto

As reported by the Wall Street Journal, Alexis Ohanian, the founder of Seven Seven Six, said he expects the company to invest mainly in crypto start-ups, as entrepreneurial and software activity in the sector is strong and growing. Still, the company isn't entirely crypto-pilled as it will also invest in other sectors such as climate, food, and space exploration, but currently, crypto-related companies account for about 40% of the firm's deals to date,

The new funds are the $300 million 776 Fund II, which supports early-stage start-ups investing from pre-seed to Series A stage, and the $200 million Arete Fund I, which focuses on more mature companies and have larger Series A and B rounds. The company is particularly interested in technologies that simplify the use of crypto products. Consumers do not need to know that their software is based on crypto technology. The firm will also be investing money and time to boost the participation of women in the crypto market.

Is private funding cooling down?

While the crypto market itself seemed to cool off at the end of the year, funding for crypto start-ups and unicorns in 2021 was an excellent year, and it does not seem like VCs are afraid to touch crypto-related companies. Just two weeks ago, The Financial Times revealed that Andreessen Horowitz plans to raise $4.5 billion for a new set of cryptocurrency funds, and about a week ago, crypto venture capital firm Dragonfly Capital Partners also announced plans to raise $500 million for a new fund.

But the number of potential IPOs may not be as large as last year, as one planned IPO has already failed. Last week, Bitcoin miner Rhodium Enterprises postponed its planned $100 million IPO due to poor market conditions. The outlook for the first quarter of this year seems quiet, and the fact that some tech companies that went public last year performed poorly overall did not help matters. That does not change the fact that the private market does not seem to be that anxious right now and is probably investing in a much longer time frame.

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