Multicoin Capital is a crypto investment company that today announced Venture Fund III with commitments of up to $430 million. Multicoin Capital is a crypto investment company that has been known for backing numerous Web3 , DeFi, and HTML3 projects. It announced the launch its third venture fund valued at $430million.
Multicoin plans to use the fund for projects that “poised to reshape massive consumer-facing markets”, according to an announcement shared with Decrypt.
Multicoin closed its second $100 million Venture Fund last year. The fund was heavily focused upon Web3 projects that use the Solana Blockchain.
Other areas the firm is excited about were also mentioned by the firm. These projects are part of the firm’s “proof-of physical work” investment thesis.
Multicoin is a platform that “incentivizes people for verifiable, real-world work that creates infrastructure.” “
The firm pointed to the two most notable “proof of physical work” projects it already has in its portfolio–decentralized wireless network Helium and Hivemapper, a Solana-based decentralized digital mapping network–adding that it is “increasingly interested in this space” and is looking for projects capable of “disrupting incumbent industries with this model. “
Hivemapper encourages users to take a drive and record their surroundings with dashboard-mounted cameras in order to create maps. Multicoin led the company, raising $18 million in Series A funding in April.
Another area the Austin-based firm is paying enhanced attention to are the so-called DataDAOs–decentralized entities that are based on “a spiritually similar idea to Proof of Physical Work,” but focus primarily on data rather than physical infrastructure.
Multicoin asserts that fragmented data can be valuable and would “be more than the sum” if aggregated. Multicoin claims that it is impossible to collect the data together because the data is too sensitive or personal, or because users lack the ability or the authority to control the aggregators.
The investment company believes that crypto can solve these problems as it creates stronger incentives and permissionless data intermediaries to share information. It allows the transfer of governance power from a small group into a large community.
Multicoin plans to also use the funds for other domains, such as creator monetization through online platforms that use cryptocurrency payments, DeFi app , NFTs , and social tokens, as well as for building cryptonative consumer goods.
The company also said that it was one of the biggest investors in Web3 infrastructure core in 2018 and intends to continue supporting this area.