Reddit co-founder Alexis Ohanian’s venture capital firm Seven Seven Six is planning to raise $177.60 million for a new crypto-focused fund called Kryptós.
“Now is potentially a unique opportunity to invest in strong founders at a discount,” read the fund’s marketing materials seen by The Information.
Kryptós scoop up popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) at a discount, citing the crypto market downturn as a way to get into the industry.
“It’s on sale. Everything is on sale,” Katelin Holloway, founding partner, told The Information.
Kryptós will charge a 2.5% management fee for investors upon its launch in October and offer an across-the-board 25% share of any profits made. If the fund grows to five times its current size, then the payout rises to 35%.
The firm has been managing over $750 million in total funds raised across three different funds since its inception in 2020, according to CrunchBase. Kryptós is the firm’s first crypto-centric fund.
Decrypt reached out to Seven Seven Six to inquire about Kryptós but has yet to hear a response.
Crypto investments on the rise
Seven Seven Six is another example of how, despite market conditions, crypto funding hasn’t slowed.
Multicoin Capital, for example, launched a $450 million crypto fund last month focusing on projects that build “real-world infrastructure in the blockchain space.”
Polygon founder Sandeep Nailwal and Cere Network founder Kenzi Wang also launched a crypto VC firm called Symbolic Capital, with $50 million raised to support up-and-coming Web3 companies.
What makes this different is that “we [the founders] built blockchain companies from the ground up and are intimately familiar with the unique challenges that these projects face,” said Nailwal.