Crypto Venture Capital Firm 1confirmation Looks to Secure $60 Million Investment
The 2018 bear run has dealt a huge blow to the crypto world. Investors lost faith and Wall Street pulled out. Entire startups with good ideas collapsed, catalyzed by tumbling BTC prices. However, various venture groups continue to seek financing since bear markets are the best time to buy.
1confirmation Wants Investor Funds
The revelation was made on Thursday in the Ventures Capital columns of the Wall Street Journal. It was revealed that 1confirmation, based in San Francisco, wants prospective investors interested in the crypto world. The WSJ noted that the company wanted $60 million for their second fund. This is more than double of their $27 million funds, which they raised in December 2017.
With the $60 million goals, the company, which has holdings in Ethereum, BTC, ETH, and Veil, wants to back infantile crypto projects. To do this, it will purchase tokens or equity.
Although the company is optimistic, the first fund got funding from Thiel Capital, Mark Cuban, and Marc Andreessen. However, the 2018 bear run is likely to attract such high profile names this time.
It Could Do Quite Well
Despite the cynicism, there is a chance it will do better than people think. The Venture Capital firm has been an avid investor in crypto. In recent times, 1confirmation backed Veil, which is a P2P prediction markets platform that is focused on Augur. It recently went online a few days ago. Veil makes it easy to use the Augur prediction markets, which has faced adoption issues in 2018. Due to the launch of REP, the augur native token has skyrocketed by about 70% in the past week.
Coinbase has been doing quite well too. The company is now valued at about $8 billion. This places it almost at par with Pinterest, which is valued at $13 billion. Coinbase is even more valuable than Robinhood, another firm working to democratize finance.
Besides the lofty valuation, Coinbase has been doing quite well. A recent document cited by Bloomberg showed that the exchange made $1.3 billion in 2018. This is despite the plummeting BTC prices. The company has also expanded what it offers to customers, making major strides in Q4 2018.
It is thus worth concluding that 1confirmation has been doing quite well on paper due to its capital allocations to Coinbase and Veil. The company also has holdings in Nervos, OpenSea, Harbor, dYdX, and Bloxroute Labs.
Many are still skeptical of the success of crypto funds in 2019. Anthony Pompliano, a crypto crusader claims that crypto organizations are in more trouble than people understand. He said that he was expecting most crypto hedge funds to shut down in 2019 because of certain legal clauses. He noted that young and inexperienced fund managers might start to shut down soon en masse, victims of the bear market.
Travis Scher, the head of a major crypto conglomerate agreed with Pompliano. During a Business Insider interview, he said that while 2018 saw a lot of venture investment in the first half, the sentiment was mostly bearish right now. Thus, it might be harder to raise any money in 2019 from investors.