Silicon Valley is still finding a lot of reasons and a lot of money to pay into the cryptocurrency sector.
<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Although the bitcoin has collapsed by half this & # 39; year, the Pantera Capital cryptocurrency fund is on track to reach a goal of $ 175 million for its third and largest fund. SEC disclosure presented this week, the company raised at least $ 71 million, Pantera executives said the total is now closer to $ 100 million. " data-reactid = "23"> Although bitcoin has plummeted by half this year, the Pantera Capital cryptocurrency fund is on track to reach a $ 175 million target for its third and largest fund. According to an SEC release filed this week, the company raised at least $ 71 million. Pantera executives said the total is now closer to $ 100 million.
Investors seem attracted to the new Pantera fund. More generally, it is the blockchain, which some experts have defined as transformative as the Internet, instead of the only cryptocurrency, which Warren Buffett famously called rat poison.
In the most recent fund, which has so far 140 investors and a 10-year investment period, buyers buy shares in a blockchain company instead of investing in a "currency".
The first offers of coins, or ICOs, often promise investors a piece of that company along the way or access to a product that may not even exist yet.
"We are witnessing a change of moment," said Paul Veradittakit, a partner of Pantera. "We are seeing much more interesting VC offers and more equity deals this year than ICO agreements."
ICOs have become too controversial for some investors. While some projects are completely legitimate, others have been exposed as running fraud and have attracted the attention of the Securities and Exchange Commission. The agency closed several projects, and technology giants Google, Facebook and Twitter banned ICO advertising on their platforms in March.
<p class = "canvas-text canvas-text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = "Veradittakit said the & # 39; company is seeing the interest of some investors for the first time they see the crypto collapse as a purchase opportunity. said that the fund's gain of its bitcoin fund was higher than 10,000. percent, net of fees and expenses. "data-reactid =" 29 "> Veradittakit said the company is seeing the interest of some investors who for the first time see the crypto collapse as a & # 39 purchase opportunities. In the letter of the most recent investor, Pantera said that the fund's bitcoin fund earning is more than 10,000 percent, net of fees and expenses.
The total of the third fund eclipses the size of previous funds from Pantera Capital, in Menlo Park, California, a company founded by former Goldman dealer Dan Morehead. Its second fund reached $ 25 million, while the first fund was $ 13 million, closed in 2013.
The first investment of the new fund was in a project called Bakkt which started in early August and is supported by Starbucks, Intercontinental Exchange, Microsoft, BCG and others. Bakkt said he intends to make consumers and institutions buy, sell, store and spend cryptocurrencies on a global network by next autumn.