Lightspeed Venture Partners to Set Up New Crypto Investing Project


Lightspeed is a capital firm that focuses primarily on the functioning of their program Snap. However, they’ve recently begun to improve activity with the inclusion of three different options. They will be launching a new crypto platform that would be innovative to the firm – a pool of cash within a larger fund that only supports the application towards crypto investments. However, the options are actually the results of Aaron Batalion’s work as partner, aiming to improve activity in their space.

Most likely, experts say that Lightspeed is going to use the new fund and set aside some of the fiat currency for crypto deals, instead of making the funds separate. The final plans haven’t been set in stone, but any unsubstantiated assumptions are just rumors at this point.

By keeping these plans within the project, Lightspeed is showing uncertainty in their next steps. Every other top-tier firm in the area is still discussing the way to incorporate into the cryptocurrency industry, though that could easily make it a brand-new revolution. Still, there are plenty of skeptics that are concerned about the separate fund, especially if the sector poses a major risk to other platforms or if it doesn’t elicit the profits expected.

According to a statement from a Lightspeed spokesperson:

“We’ve been making many investments in the fintech space over the past several years, including Affirm, Blockchain, Basis, and more that are unannounced. Blockchain technologies are a huge area of interest for us and we have partners focused on this. In terms of a dedicated crypto fund, we have nothing to announce at this time.”

Potential Options

At the moment, Lightspeed is considering:

  • A carve out
  • A new fund
  • A spinout

A carve out would involve setting aside some of the current funds that are presently allotted for crypto investments and make a public statement about it. This is close to the way that Kleiner Perkins Caufield & Byers used iFund with Apple projects. This method has also been used by Accel to create Big Data Funds as a separate account for startups of similar interests.

A new fund would only focus on the way crypto investments are handled, which is a lot like the offering that Andreessen Horowitz provided. However, there are some sources that have reported that Lightspeed is shying away from using this option, even though it would allow venture capitalists to engage with limited partners.

Spinouts are fairly popular among these types of funds, and some sources say that Batalion doesn’t want to wait for the project to allot separate funds. He’s repeatedly told people that he’d opt to step down from Lightspeed as a partner to create his own crypto project separately. However, this report was only suggested by one unknown source that is close, and it is one of the more traditional results that comes from these situations.

Current ICO

Right now, the Lightspeed firm has an ICO running on Telegram. However, this move comes after they backed out of the ICO they had with Basis, despite raising $133 million.

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