Key Takeaways
- Fineqia is launching a new venture capital fund named Fineqia Glass Slipper Ventures (FGSV) focused on digital assets.
- FGSV will leverage Fineqia’s expertise to identify emerging organizations and protocols across the new digital asset economy.
- The fund will invest in key areas such as blockchain infrastructure, decentralized finance (DeFi), and the metaverse, including gaming, media, and entertainment.
- FGSV will also allocate funds toward opportunistic deals such as distressed companies and to back entrepreneurs tapping into new emerging technology applications within the blockchain industry.
The recent decline in blockchain and cryptocurrency-related VC investments has left many investors apprehensive about investing in the industry. With scandals, market downturns, and regulatory uncertainties plaguing the industry, private funding for crypto startups in the first quarter of this year hit its lowest point since 2020. Despite this trend, Fineqia International Inc. plans to set up a new VC fund to invest in digital asset-focused companies. While the overall crypto venture investing has dwindled, Fineqia is confident that their investing strategy will generate significant returns by investing in promising firms that hold substantial growth potential in key investment areas such as blockchain infrastructure, DeFi, and the metaverse, including gaming, media, and entertainment.
Fineqia International Inc., a digital asset and fintech investment business, has announced its plan to launch a new venture capital fund that will focus on investing in innovative companies in the digital asset industry. The fund will be named Fineqia Glass Slipper Ventures (FGSV), and it will leverage Fineqia’s expertise in digital assets and its focus on investing in early and growth-stage technology companies to identify emerging organizations and protocols across the new digital asset economy.
As part of its plan, Fineqia will transfer a selection of its investments to FGSV, which will form part of FGSV’s portfolio. In exchange, Fineqia will receive a proportionate equity interest in the fund. The company has previously invested in digital asset manager Wave Digital Assets LLC, the Wave NFT Fund, blockchain gaming platform company Forte Labs, Inc., and the IDEO CoLab Fund 1 from its balance sheet.
Bundeep Singh Rangar, CEO of Fineqia, noted that the company has a proven track record of investments that are generating extraordinary returns.
He added that the investment fund would give the company more firepower to invest in the most promising firms among the scores it sees monthly and take advantage of entry valuations that are not as frothy as they were 18 months ago. This means the same investment sum can be deployed across more companies.
The company aims to set up FSGV as a private closed-end fund in the European Economic Area (EEA) to generate significant returns by investing in promising firms that hold substantial growth potential.
Fineqia has identified segments such as blockchain infrastructure, decentralized finance (DeFi), and the metaverse, including gaming, media, and entertainment, as key investment areas.
The fund will also allocate some funds toward opportunistic deals such as distressed companies and to back entrepreneurs tapping into new emerging technology applications within the blockchain industry.
The company said that it will take a chain-agnostic approach, recognizing that the future of blockchain will be multi-chain and borderless, premised on interoperability, seamless customer onboarding, and tangible revenue traction.
FGSV will be set up with the appropriate approval of a regulator located within the EEA, which includes the European Union countries as well as Iceland, Liechtenstein, and Norway.
The set-up cost of FSGV will be CHF 100,000 (C$150,000), and the company anticipates an initial closing, which is the first time that investors commit to making their investment, by Q3 2023.
Fineqia’s new VC fund is a significant step toward investing in promising firms that hold substantial growth potential in the digital asset industry. The company’s expertise and focus on investing in early and growth-stage technology companies will be leveraged to identify emerging organizations and protocols across the new digital asset economy.
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