Valkyrie Aims to Raise $30 Million; Is Crypto Investment Rout Over?

Updated by Ryan James
In Brief
  • Crypto asset manager Valkyrie is set to raise $30 million for its venture capital arm.
  • The news of Valkyrie's investment arm comes on the back of a crypto market recovery.
  • With several web3 businesses announcing new investments, FTX is also reportedly looking for funding.
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Crypto asset manager Valkyrie is set to raise $30 million for its venture capital arm, reported TechCrunch.

Valkyrie has reportedly hired Lluis Pedragosa to lead the new Valkyrie Ventures with his investment experience of over 10 years.

Valkyrie’s new arm to further web3 investment

Pedragosa explained that the vertical will be supporting companies providing a “web2 user experience” with “web3 infrastructure”, adding, “The idea for us is we want to invest in what we call the middleware layer, which is kind of like the infrastructure layer — anything that is between an application and the layer one protocols and in what we call web 2.5,”

He also specified that Valkyrie’s funding arm won’t be investing Valkyrie’s balance sheet capital but use the external investment from institutions and high net worth individuals (HNIs) to raise the set $25-$30 million in funding.

According to Pedragosa, the fund is strategic for Valkyrie because it focuses on emerging infrastructure that the company might use for its digital asset management operations, such as security, authentication, compliance, data management, storage, networking, communication, governance, payments, and transactions firms. According to him, the company would concentrate on funding the resources required by developers to create decentralized businesses.

“Traditional corporate VCs move relatively slow, or slower than, financial VCs. Sometimes you need to have a champion within the business that wanted to support your investment in a company, for example. So that’s why I stay away from that, why [our fund] is separate. I don’t need to convince anyone. If we think it’s a good investment, we just do it,” Pedragosa said.

Notably, the news of Valkyrie’s investment arm comes on the back of a crypto market recovery. The global cryptocurrency market cap surpassed $1 trillion on July 20 after weeks of investor fear and uncertainty.

Crypto money continues to flow 

While it is to be seen if the market recovery is sustainable, several web3 businesses have announced increased investments. Blockdaemon, a provider of crypto infrastructure, has reportedly acquired Danish startup Sepior, a provider of key management services for institutional clients, for an undisclosed sum.

According to another report, Tribe Capital has collected $25 million from outside investors and established its incubator program under Tribe Crypto Labs.

Meanwhile, according to the latest industry reports, FTX’s Sam Bankman-Fried is in discussions to secure new funding even after continued spending in the recent collapse of the digital asset market.

According to sources to Bloomberg, both FTX and its American subsidiary FTX US is conducting fundraising efforts. They say that FTX wants to raise money at around the same valuation as its fundraising in January. While FTX US raised $400 million at an $8 billion valuation, FTX claimed in January that it had raised $400 million at a $32 billion valuation.

That said, CoinShares’ recent report also found that investment in the digital asset market has continued for the third straight week. 

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