coincodex.com
Key highlights:
- FTX has launched a new venture capital unit called FTX Ventures
- The unit will have $2 billion to invest with its first fund
- FTX Ventures is led by Amy Wu, who already has extensive venture capital experience at Lightspeed Venture Partners
FTX launches $2 billion fund and venture capital unit
The FTX cryptocurrency exchange has launched a new venture capital unit called FTX Ventures, which will start off with a $2 billion fund. In their launch post, FTX Ventures said they’re “excited about crypto” but will occasionally also make investments outside of the cryptocurrency and blockchain space. Some of the sectors that the new VC unit is most interested in are “gaming, social, software, fintech and healthcare”.
FTX Ventures will also maintain a similarly flexible approach to the type of deals it will be making. The unit says that they are looking to invest in either equity or tokens, work with projects at any stage of development, at any check size.
FTX Ventures will be headed by Amy Wu, who’s known for her work at Lightspeed Venture Partners. In a Twitter thread, Wu said that she will continue as a partner and advisor with Lightspeed despite taking on the new role at FTX Ventures. According to Wu, her involvement with FTX will extend beyond just FTX Ventures, as she will also be working with the exchange on the gaming sector, mergers & acquisitions, and Web3 initiatives.
The launch of FTX Ventures comes at a time where the cryptocurrency and blockchain sector is already swimming in venture capital. In 2021, venture capital investors poured more than $30 billion into crypto, more than in all previous years combined.
The unit’s $2 billion fund is one of the largest funds ever raised for investing in crypto and blockchain, although it is smaller than Paradigm’s $2.5 billion venture fund and Andreessen Horowitz’s $2.2 billion Crypto Fund III.
FTX is currently one of the biggest exchanges in the cryptocurrency industry despite being a late entrant into the scene (the exchange launched in 2019). In 2021, the exchange launched an aggressive marketing campaign headlined by a $210 million deal with esports organization TSM and a $135 million deal to rename the home arena of the Miami Heat NBA franchise to FTX Arena. In a funding round raised in October 2021, FTX was valued at a whopping $25 billion.