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Golden Gate Ventures rolls out dedicated US$10m fund for blockchain investments

GOLDEN Gate Ventures (GGV) - a Singapore-based venture capital firm that has invested in startups like Carousell and MoneySmart - is launching a dedicated fund for blockchain investments.

Named LuneX Ventures, it is a new US$10 million fund that will invest in cryptocurrency and blockchain startups globally.

The fund is targeted to be closed "within the year", and will be a separate fund from GGV's Fund 3, a US$100 million fund for South-east Asian tech startups that is targeted to be closed by the end of 2018, The Business Times has learnt.

LuneX Ventures is a partnership between GGV and Kenrick Drijkoningen, former head of growth at GGV and founding partner of LuneX.

Mr Drijkoningen said: "We view blockchain as a foundational technology, on a par with or possibly exceeding the Internet in disruptive potential. Right now, valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.”

GGV said that initial coin offerings (ICOs) have raised US$9 billion globally in the first half of 2018, triple the US$6 billion raised in all of 2017.

The firm is already a player in this emerging wave. Thus far, its portfolio companies have raised over US$35 million through ICOs, with others soon to follow.

"Singapore is a prime location for a dedicated fund as the city-state has a burgeoning base of tech talent for cryptocurrency and blockchain projects, and a supportive government," he said.

Asked why a dedicated fund is important for this space, GGV pointed to the need for highly-specialised knowledge in an emerging industry.

"Holding cryptocurrencies or digital assets is quite hard as a fund due to the lack of proper custody solutions and issues with traditional banking," said the spokesman. "With LuneX, we're looking to go deep into the blockchain industry and provide our portfolio companies with industry expertise and connections."