Sources tell The Block that DeFiance Capital is planning to raise $100 million to invest in liquid tokens. One source claimed that nearly half the target fundraise has already been completed.
DeFiance Capital is a crypto venture capital company that separated from the bankrupt Three Arrows Capital (3AC).
Three sources who have direct knowledge of the matter informed The Block that DeFiance Capital is currently raising $100 million to invest in liquid tokens.
One source said that the fund is called Liquid Venture Fund and that nearly half of the targeted fundraise was completed.
The target raise is $100,000,000, but the fund can start investing with less than that, according to two of the three sources. DeFiance Capital received commitments from one of the crypto funds, as well as a few family offices.
Arthur Cheong founded DeFiance Capital in 2020. The firm used to call itself a “subfund and share class” of Three Arrows Capital. In June, 3AC ran into financial difficulties. DeFiance Capital declared in July that it was a separate company and is now independent.
3AC was one of the largest hedge funds in the crypto industry, and had been growing before the Terra ecosystem collapsed. It suffered significant losses. A British Virgin Islands court appointed Teneo, a financial advisory firm, to manage 3AC’s liquidation. 3AC filed Chapter 15 bankruptcy in New York later.
Recently, DeFiance Capital stated that it was “materially affected” by 3AC’s liquidation.
DeFiance’s latest fundraising effort is coming as more venture capital firms are interested in investing in liquid tokens. Sequoia Capital created earlier this year to invest in “liquid tokens”, tokens that have been listed on crypto exchanges.