Venture capitalists Marc Andreessen, Galaxy Digital, and Accolade Partners are the main backers of the crypto VC firm 1kx’s most recnet fund.
1kx is reporting $75 million in funds raised via the investment round with Chris Dixon, a partner at Andreessen Horowitz, named as one of the limited partners. This, according to statements shared with Bloomberg on March 28, 2024 by Lasse Clausen, the founding partner at 1kx.
Private equity company Accolade is mentioned as the anchor investor in the new fund, Clausen noted.
1kx’s fund will aim to focus on crypto-powered consumer apps. The latest fund has allocated capital towards several key investments, according to Clausen, who has not revealed the names of the projects/companies.
Clausen had reportedly founded 1kx during the extended bear market of 2018 with assistance from Christopher Heymann.
The latest fund has been established during a time of unprecedented institutional interest in digital assets, amplified by the approval of several spot Bitcoin exchange-traded funds (ETFs) in the US.
VC funding in crypto-focused initiatives and startups experienced a rise in the final quarter of 2023 to nearly $2 billion, a figure that is slightly greater than the last reported quarter, as per data and reporting from researchers at PitchBook. Notably, this marks the very first occasion that Venture Capital investments have surged since back in March of 2022.
With the Bitcoin (BTC) halving approaching within the next month and the pending/anticipated approval of ETH spot ETF applications, among other potentiallly positive crypto industry developments, we can expect many more funds to launch in 2024.
In addition to key regulatory developments, major technical upgrades like Ethereum’s relatively successful Dencun upgrade and the rise of high-potential blockchains like Solana will pave the way forward for the broader crypto and DLT sector. Moreover, the increasing adoption of tokenization initiatives, with BlackRock being the most notable as of late, it is evident that the digital assets space is maturing. Even after the FTX catastrophe and many other crypto ecosystem disasters, the industry has proven to be resilient and it is expected that many new crypto startups will report substantial funding rounds in the coming year.