Even though the crypto market is experiencing a period of decline, Pantera Capital is aiming to reach its $175 million fund, which is targeted towards long-term investors.
The blockchain-focused investment firm is focusing on a fund that is aimed at investors that want to capitalize on the market’s bearishness and remain invested for a longer period of time. Currently, they have raised $100 million through a VC-like funding round, already having invested a part of the funds in its Bakkt project, which is supported by major brands including Intercontinental Exchange, Starbucks, and Microsoft.
The company has had two other previous funds, the third one being the largest. The first fund had a target of just $13 million, while the second fund was valued at $25 million.
A disclosure document filed at SEC this week showed that the company has succeeded in gathering $71 million. But Pantera executives estimated that the actual sum is closer to $100 million. This is proof that investors from the US have faith in the cryptocurrency sector and that they still have the desire to keep on investing even if the prices are low right now. Considering that cryptocurrencies have seen tremendous increases in the past, a dip would be the perfect opportunity for a long-term investment.
140 investors are already secured by Pantera and have invested in the fund. The investment period is set to last for10 years, with the funds not only letting investors making acquisitions in the coin, but also letting them buy equities into the blockchain company.
Paul Veradittakit, a partner at Pantera, stated the following:
“We’re seeing a shift in momentum. We’re seeing a lot more interesting VC deals, and more equity deals this year than ICO deals.”
He also explains that new investors will be more inclined to buy on the dip, as they see it as an opportunity. Bakkt, the company’s most recent crypto project, will be aimed at providing a crypto platform for transactions for retail consumers and institutions, scheduled to be released this year’s fall.
Pantera’s newest fund mirrors the investors’ opinion regarding initial coin offerings (ICOs), which are now seen as risky and controversial endeavors. While many of these blockchain projects promised much in its early phases, a wide majority of them end in failure or prove to be scams.