LongHash Ventures, an investment firm and accelerator with a primary focus on web3, has announced the launch of its second fund with a target amount of $100 million. In addition, according to Emma Cui, the CEO of the venture capital firm, the company is still in the process of gathering cash and has set a goal of reaching $100 million for its Fund II before the year ends. The company’s previous fund concentrated on pre-seed to seed rounds of investing, but they now want to broaden its scope to include investments in later stages.
Why is LongHash investing in a struggling market?
As a result of a “huge flood of talent” from the Web 2.0 to the Web 3, the firm decided to set up this fund. This is being driven in particular by projects coming from both the West and Asia. To this day, LongHash Ventures has provided financial support to over 60 different cryptocurrency projects. Some of these projects include Polkadot, Astar, Acala, and Balancer. Also, the firm runs LongHashX, an accelerator program that has partnered with more than 50 web3 projects around the world.
With the $100 million, the web3 infrastructure projects supporting DeFi, NFTs, GameFi, and the metaverse will be able to move from pre-seed to Series A. On the other hand, according to the company, LongHashX projects have together raised more over $150 million over the course of the previous four years. The company’s CEO stated that because they do not maintain a liquid portfolio, they are not as vulnerable to drawdowns in the short term.
The investment horizon for the LongHash Ventures capital fund is between five and seven years. In addition, the firm says that the company’s subsequent fund will most likely have a much longer time horizon. In light of the fact that the market for digital assets has been performing so poorly over the past several months, this is encouraging news for the company. They are of the opinion that now is a good time to hunt for projects with high potential and support those investments in the long run because the market is in a bear market.