OP Crypto Takes Aim at Emerging Fund Managers with New ‘Fund of Funds’
In a bid to shake up the traditional venture capital landscape, OP Crypto, a venture capital firm focused on early-stage crypto investments, is launching its new investment vehicle, dubbed "Fund of Funds". The fund will deploy capital into emerging fund managers who are making waves in various sub-sectors of the crypto space.
What is a ‘Fund of Funds’ and How Does it Work?
In essence, a fund of funds is an underlying diversifying vehicle for investors looking to get actively involved in crypto. According to David Gan, founder and general partner at OP Crypto, "it’s a very good vehicle for strategic investors looking to really increase their deal flow across international borders and amongst people with niche vertical expertise." The Fund of Funds will allow these investors to tap into the knowledge and expertise of emerging fund managers who are making significant strides in various areas of crypto.
OP Crypto’s Focus Areas
The firm will be focusing on supporting fund managers from sub-sectors such as infrastructure, decentralized finance (DeFi), non-fungible tokens (NFTs), metaverse, gaming, and those with a geographical advantage in Latin America, Africa, India, and Southeast Asia. Gan notes that "we want to have an even spread of exposure in bull and bear markets, so there’s good investments throughout both cycles."
Receiving $50 Million in Commitments
Despite the current choppy market sentiment, OP Crypto has already received $50 million in commitments from both traditional and crypto-focused Limited Partners (LPs), including LedgerPrime and FJ Labs. The firm is targeting a hard cap of $100 million for its new fund.
Meet Lucas He, COO and Head of Research at OP Crypto
Lucas He, who previously worked at Huobi, will be the general partner to the Fund of Funds. He brings with him a wealth of experience in institutional money management, having seeded funds for managers like Multicoin Capital, Dragonfly Capital, and 1kx. "Combining my experience with [Gan’s], we really have a spectrum of CeFi, TradFi and DeFi experiences that give a great understanding of institutional money and their demands in the space," he said.
Previous Successes
OP Crypto’s flagship venture vehicle, OP Ventures Fund, raised $50 million just a few months ago. This fund is backed by prominent investors such as Alan Howard and Bill Ackman alongside crypto-native institutions like Animoca Brands, Digital Currency Group, and Galaxy Digital. Gan notes that "ultimately we’re at a state where a lot of institutional investors don’t know where to park their money, and this safe haven-like vehicle allows people to come in."
A Safe Haven for Institutional Investors
The Fund of Funds aims to provide a safe haven for institutional investors who are looking to diversify their portfolios. With the crypto market experiencing high volatility, OP Crypto’s new fund offers a way for these investors to tap into emerging managers who have expertise in specific areas.
Emerging Managers and Venture Capital
OP Crypto is only looking for emerging managers investing in venture, which means they will be focusing on longer-term investments with more reasonable valuations. Gan notes that "we’re at a state where a lot of institutional investors don’t know where to park their money, and this safe haven-like vehicle allows people to come in."
A New Era in Venture Capital
The launch of OP Crypto’s Fund of Funds marks a new era in venture capital, as the firm takes aim at emerging fund managers who are making significant strides in various areas of crypto. With its focus on supporting these emerging managers and providing institutional investors with a safe haven for their money, it will be interesting to see how this new vehicle performs.
Key Takeaways
- OP Crypto is launching a new investment vehicle called "Fund of Funds" which will deploy capital into emerging fund managers focused on early-stage crypto investments.
- The firm has already received $50 million in commitments from both traditional and crypto-focused LPs, including LedgerPrime and FJ Labs.
- Lucas He, COO and head of research at OP Crypto, will be the general partner to the Fund of Funds.
- OP Crypto’s flagship venture vehicle raised $50 million just a few months ago and is backed by prominent investors such as Alan Howard and Bill Ackman.
Conclusion
OP Crypto’s new Fund of Funds marks an exciting development in the world of venture capital. By supporting emerging fund managers and providing institutional investors with a safe haven for their money, this new vehicle has the potential to shake up the traditional VC landscape. As the crypto market continues to evolve, it will be interesting to see how OP Crypto’s Fund of Funds performs.
