Crypto investment firm announces $430M fund.
Multicoin announced its third $430 million venture fund. The crypto investment firm that is known for its support of multiple projects in the web3 and DeFi space has announced what it has dubbed “Venture Fund III”
The fund is intended to be used for investment into projects that are intended to reshape a wide range of consumer-facing markets. The company used its last venture fund, a fund in the amount of $100 million, to support web3 projects that were being built on Solana. The firm has stated interest and excitement towards projects that fit into a “proof of physical work” thesis.
Proof of Physical work is a category that incentivizes people to do work that can be verified and that builds infrastructure in the real world. Two platforms that fit perfectly into the PoPW category would be Hivemapper and Helium.
Hivemapper is a decentralized mapping network that is Solana based and incentivizes drivers to help build its mapping platform meant to compete with the likes of Google and Apple map. Drivers are given tokens for their use of the Hivemapper dash cam and driving using the cam, there are more incentives for going on roads not traveled before or requested by the team. The company raised $18 million in a Series A round in April of 2022.
The company will also use the new funds to research DataDAOs which are similar to Proof of Physical Work but focus more on data than physical infrastructure. Aggregated data is far more valuable than fragmented data. Currently, there is a lot of fragmented data, and the ability to aggregate it all seems difficult due to security and governance issues. Multicoin believes crypto can solve some of the issues and thus make aggregation possible.
More sectors that can benefit from the Multicoin influx of funds include creator monetization through online platforms that allow for the use of crypto, imagine youtube monetization but web3 based. The team is also looking into new DeFi apps, NFTs, social tokens, and crypto-native consumer products. Multicoin has no intention of slowing down and has promised to reveal several new projects soon.