Lightspeed Faction has unveiled a $285 million fund aimed at supporting early-stage blockchain projects, according to an announcement made on November 9, 2023.
Lightspeed Faction, a venture capital firm, has unveiled a $285 million fund aimed at supporting early-stage blockchain projects, according to an announcement made on November 9, 2023. The fund will not only provide initial capital but also continue to support projects as they scale.
With a focus on the burgeoning blockchain space, Lightspeed Faction offers entrepreneurs access to a team of seasoned blockchain investors and operators, which includes members from prominent firms like the Amber Group, Blockchain.com, and Coinbase.
The venture is a collaboration between Lightspeed Venture Partners, a traditional tech-oriented fund, and Faction, a crypto-only fund, combining the strengths of both entities to enhance the potential for success.
Co-founder of Lightspeed Faction, Banafsheh Fathieh, emphasized the necessity of the $285 million fund, highlighting the numerous promising blockchain projects emerging daily:
“Crypto is a generation-defining technology, and we are fully committed to investing behind the best entrepreneurs looking to propel blockchain technology forward. The blockchain ecosystem is full of promising projects looking to disrupt everything from financial systems to telecommunication.”
Lightspeed Faction also revealed that it had previously funded several successful blockchain startups during the bear market, including Crossmint, Lens, Narya.ai, Skip.money, Matter Labs, and others. The firm typically gets involved in seed and Series A rounds.
In the third quarter of 2023, crypto venture capital funding experienced a three-year low, as many funds appeared cautious due to lower crypto prices and reduced media attention compared to the bullish market of 2021. Despite this, some projects have still managed to secure multi-million dollar raises, showcasing resilience in the face of reduced funding levels.
Lightspeed Faction is a blockchain-focused venture capital firm that invests in early-stage startups across the blockchain ecosystem. It is a joint venture between Lightspeed Venture Partners and a team of experienced blockchain investors and operators.
Lightspeed Faction is committed to supporting the growth of the crypto space and investing in projects with the potential to meaningfully contribute to and advance the industry and society at large.