Exclusive report
- Lattice’s last fund was $60 million.
- The venture capital firm specializes in investing in early-stage crypto companies.
- Several investors are topping up their reserves amid the recovery.
Another crypto venture capital firm plans to raise another batch of capital.
Lattice, which has been investing in crypto since 2021, is raising a third fund, according to documents filed Monday with the U.S. Securities and Exchange Commission.
The filings do not specify what size the fund will be.
Regan Bozman, co-founder of Lattice, said DL News that he is “unable to share anything on this topic” and declined to comment.
In 2022, the venture capitalist, which specializes in investing in early-stage crypto startups, raised a $60 million fund, three times more than its first capital pool, Lattice said. CoinDesk.
The company has invested in 81 projects, according to PitchBook data. Two of its largest investments are in Immunefi, a bug bounty platform for crypto, and Protocol Labs, one of the main developers behind Filecoin, a decentralized cloud storage network.
8 billion dollars
Lattice rolled out its latest fund amid the prolonged crypto bear market in 2022 and 2023. Its third investment foray comes amid a roaring rally for crypto assets.
Startup investors are looking – cautiously – to capitalize on the buzz.
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Crypto companies have raised more than $8 billion so far this year, already more than the total of $7.3 billion raised in 2023, according to data from DefiLlama.
Yet venture capital enthusiasm for digital assets does not match the rush of capital in 2021 and early 2022.
In the first quarter of 2022, global venture capital investments in crypto reached a peak of $11.2 billion, according to PitchBook data.
Since then, VC crypto investments have collapsed to a two-year low of $1.75 billion in the third quarter of 2024, according to PitchBook.
Crypto bearish to bull
However, the fourth quarter could be different.
On Wednesday, Bitcoin surpassed $100,000 for the first time in the asset’s history. Solana also broke a new all-time high earlier in November, and while Ethereum has yet to set a new record this cycle, it is up over 70% this year.
The total value of the crypto market has reached unprecedented heights and is approaching $4 trillion, according to CoinGecko.
And crypto has even found favor in the Oval Office. Or at least that will be the case when Donald Trump begins his second presidential term on January 20.
Trump has called himself a “crypto president,” picked pro-crypto candidates to lead financial regulatory agencies, and mulled adding a “crypto czar” to his administration.
It remains to be seen whether Trump’s re-election will trigger a new boom in venture capital aimed at crypto startups, but some industry observers are optimistic.
“Many large funds are actively being raised, which will contribute to larger fundraising totals over the next 12 to 18 months,” wrote Robert Le, senior analyst at PitchBook, in a September report analyzing fundraising. crypto VC funds in third quarter 2024.
Ben Weiss is DL News’ Correspondent in Dubai. Do you have any advice? Send him an email to bweiss@dlnews.com.
