A group of cryptocurrency venture capitalists has created a $20 million fund to invest in undervalued Web3 projects and companies focused on blockchain gaming and digital collectibles.
Alpha Protocol Ventures (APV) will seek to invest in various Web3 ecosystem initiatives, its CEO and founder Vagelis Diamantis told Cointelegraph via email.
According to him, gaming and collectibles will be a top priority, while decentralized finance, layer-1 and layer-2 protocols will also come within the fund’s capital allocation scope.
“We will also explore projects that will try to solve real-world problems such as supply chains, data protection and infrastructure.”
APV has received funding from Diamantis, Nick Rose, CEO of Ethernity, Morningstar Ventures, a Web3 investment firm, and a group of Web3 angel investors.
Diamantis, formerly the chief financial officer of Ethernity, stated that APV had identified several potential investment targets and that it would also provide support to “undervalued projects” that were launched as “buy-and-hold funds” such as Polygon, Polkastarter, Axie Infinity, and Ethernity.
A protracted bear market, according to Diamantis, still presents an opportunity for investors to back projects in their inception that are developing blockchain-based innovative solutions.
Since its inception, the cryptocurrency ecosystem has undergone numerous cycles. It’s an entirely new asset class that will grow exponentially.
Diamantis stated that APV would invest more heavily in blockchain companies and Web3 applications, focusing on undervalued companies and undiscovered blockchain technologies.
Through 2023, venture capital firms and fund managers continued to invest substantially in Web3 projects and platforms.
In an exclusive interview, Yat Siu, the founder of Web3 neobank Hi, described innovative products such as its customizable nonfungible token-styled crypto debit card as a possible draw for Web3 enthusiasts. Animoca Brands announced in July 2023 that it would invest $30 million in Web3 neobank Hi.
In the meantime, another venture capital firm, Vessel Capital, announced a $55 million fund that will similarly seek to support Web3 infrastructure and applications.
This was surpassed by the cryptocurrency exchange Bitget, which reportedly unveiled a $100 million fund aimed at Web3 and blockchain initiatives in Asia.
