White Star Capital Launches $50M Crypto & Blockchain Fund
White Star Capital Launches $50 Million Crypto Fund
White Star Capital, a venture capital firm with a history of investments in companies like Digg, LaunchRock, Meero, Summly, and Tier, is expanding its focus to include the rapidly evolving crypto and blockchain space. The firm has announced the creation of a new $50 million Digital Asset Fund.
Fund Details and Backing
This dedicated fund will concentrate on investments within crypto networks and businesses leveraging blockchain technology. Initially planned at $30 million, the fund’s size was increased due to strong investor interest. Significant institutional support comes from both Bpifrance and Ubisoft.
Fund Management and Investment Strategy
The Digital Asset Fund will be managed by Sep Alavi, a General Partner based in New York. He will be supported by Principals Thomas Klocanas (New York) and Sanjay Zimmermann (Toronto).
The fund intends to allocate between $500,000 and $3 million in initial funding to 15-20 companies, primarily located in North America and Europe.
Focus Areas within the Crypto Ecosystem
Alavi stated the firm is intensely focused on the crypto space and anticipates accelerated innovation in areas like crypto credit, DeFi, NFTs, and metaverses. The fund will actively invest in crypto protocols, infrastructure, privacy solutions, and applications within the financial, gaming, and social sectors.
Existing Portfolio Companies
The fund has already deployed capital into six ventures. These include dfuse, Multis, Paraswap, Rally, Safello – a European crypto brokerage listed on the Nasdaq First North exchange – and Ledn, a global platform for digital asset savings and lending.
Industry Support and Ecosystem Growth
Yoann Caujolle, managing director of Bpifrance, emphasized the importance of investment from experienced firms to support emerging crypto and blockchain startups. He expressed enthusiasm for partnering with the Digital Asset Fund team to bolster the French and European blockchain ecosystem.
White Star Capital’s Broader Strategy
Alavi explained that White Star Capital is currently investing through three distinct funds. While the firm historically focused on enterprise and consumer businesses, it has been actively researching the blockchain sector for the past two years.
He noted his personal involvement in the blockchain space since 2015, bringing over five years of specialized knowledge to the new fund.
Investment Verticals and Approach
The fund’s investment strategy centers around three key verticals: the protocol layer, the infrastructure layer, and the application layer. The fund will invest in tokens at the protocol layer, alongside equity investments.
White Star Capital maintains an agnostic and opportunistic approach, identifying promising use cases in decentralized finance and the NFT space, while remaining aligned with its core investment verticals.
The firm believes this focused approach will enable it to capture significant value within the evolving digital asset landscape.
