Golden Gate Ventures, a renowned venture capital fund in Southeast Asia is launching a spinoff designated for blockchain and cryptocurrency startups. The subsidiary, known as LuneX Ventures, is a product of a collaboration between the company and its previous Head of Growth, Kenrick Drijkoningen.
Kenrick believes that the timing of this new platform is perfect, mainly because of the ongoing excitement around blockchain technology and digital currencies. Specifically, Kenrick mentioned that they are confident that blockchain will surpass the internet in terms of disruptiveness. He added that the sector is growing at steady pace, making now the ideal time for investment.
In the first six months of the year, ICOs have raised a total amount of $9 billion. Comparatively, ICOS managed to accumulate a total of $6 billion throughout last year.
Golden Gate Ventures has contributed to this massive leap, with its portfolio projects having raised $35 million through ICOs since the beginning of the year. The success of the company is attributed to its prime location, the Singapore city. Besides housing several blockchain institutions, the local government is also supportive of cryptos and distributed ledger technology.
After its inauguration, LuneX will become the pioneering blockchain fund in Southeast Asia that is backed by a conventional venture capital firm. The fund will invest on a global scale, with an inclination towards innovative startups. Also, the project will adopt a long-term strategic plan, primarily because blockchain technology is still nascent.
The introduction of LuneX comes shortly after Andreessen Horowitz launched a dedicated crypto fund. This trend will obviously continue, as blockchain startups prefer specialized funds to traditional venture capital funds. The bias arises because specialized funds provides advisory services alongside the capital, some that lacks in traditional solutions.
In this regard, Kenrick noted that LuneX was established to bridge the knowledge gap between investors and the crypto asset class. He added that the LuneX fund is legally complaint and easily accessible to interested parties. Lastly, Kenrick disclosed that the fund can invest in a project’s tokens if they are deemed promising.
As mentioned earlier, LuneX prioritizes blockchain startups that front brilliant and creative ideas. Some of the aspects considered during the selection process include, scalability, interoperability, practicability, and security. Aldo, LuneX recently appointed Tushar Aggarwal as its associate. Aggarwal is a renowned mentor to upcoming fintech firms. He is currently pursuing a Master’s degree in cryptocurrencies and blockchain technology.