New Zealand-based venture capital firm Global From Day 1 (GD1) recently said it has launched a $5 million Web3 and cryptocurrency-focused venture capital fund to support local startups. The fund will invest in pre-seeds of Series A companies in Decentralized Finance (defi), Decentralized Autonomous Organizations (DAOs), Non-Fungible Tokens (NFTs) and Web3.
GD1’s Web3 and Encryption Strategies
To encourage New Zealand startups and local investors, GD1 has launched a $5 million Web3 and cryptocurrency-focused venture capital fund. Dubbed GD1 Crypto Fund 1, the fund will be led by cryptocurrency and Web3 expert Nawaz Ahmed as general partner. GD1’s co-managing partner, Vignesh Kumar, said in a press release about what the new general partner is expected to bring:
One of our goals at GD1 has always been to diversify into new areas of focus and to continually expand our knowledge base by adding individuals with diverse and interesting experiences, so we’re delighted that Nawaz has joined the GD1 team to help lead our web3/encryption strategy.
Kumar added that Nawaz’s work provides GD1 with an important platform to test the fund’s “thesis around the concept of permissionless innovation on which web3 is based.”
According to the statement, the fund’s first close is scheduled for June, with international LPs expected to commit to oversubscription ahead of time. At the same time, the statement clarified that GD1 Crypto Fund 1 is separate from GD1 Fund 3.
For his part, Ahmed spoke about how local startups seem to seek funding only from overseas sources. He said:
“In the past, the best New Zealand companies in the field could easily raise capital globally without having to rely on local investment. This is a missed opportunity for New Zealand-based funds and we hope to be the first to explore Chance.”
As Ahmed admits, a number of funds focused on Metaverse, Web3 and cryptocurrencies have sprung up over the past few years. Unlike GD1’s fund, however, some global venture capital groups, such as Griffin Gaming Partners, a venture capital firm focused on gaming-related investments, have launched larger funds.
As recently reported by Bitcoin.com News, Griffin Gaming Partners has set aside $750 million to fund Web3 and blockchain projects. Earlier this year, Electric Capital reportedly raised $1 billion to back crypto startups and buy tokens, while Dragonfly Capital closed its fund with an oversubscribed $650 million.
Meanwhile, the New Zealand Ventures statement revealed that GD1 will invest in pre-seeds of Series A companies in Decentralized Finance, Decentralized Autonomous Organizations, Non-Fungible Tokens, Web3 and Crypto Infrastructure.
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