The main investor of Snapchat creates a cryptocurrency fund
On May 18, Recode announced that it has discovered Lightspeed Venture Partners, the leading investment company that has supported many successful technology companies, including Snap Snap, which plans to establish an exclusive fund for the cryptocurrency market.
Three options
Sources of Recode confirmed that the venture capital firm is actively investigating various methods that could be used to invest in blockchain projects and focus on investments in cryptocurrency. However, the plan is not yet finalized, mainly because the company has not yet decided on the scope of the investments.
Similar to Bitmain, the multi-billion dollar cryptocurrency hardware maker, it could prioritize blockchain projects and emerging blockchain protocols or initial coin offerings (ICOs), while facilitating cryptocurrency management. which is much easier than being an early-stage investor in country offices as a venture capital firm.
Currently, the venture capital firm is exploring three possible strategies that could be used in the short term to penetrate the cryptocurrency market. The first is a fund similar to Andreessen Horowitz, which operates independently of Lightspeed Venture's leading technology-driven initiative and focuses solely on the cryptocurrency market.
The second strategy is to invest directly in blockchain projects in order to become heavily involved in the cryptocurrency sector, and to redefine the image of Lightspeed Venture as a cryptocurrency investment company. The third option envisioned by the company is the creation of a new company that will operate outside Lightspeed Venture independently.
Direct investment in ICO and Blockchain projects
According to several reports, Lightspeed Venture has already invested in Telegram's ICO, one of the most-used messaging applications that has raised more than $ 1.7 billion in pre-sales. Because of its massively successful presale, Telegram has revealed that it will no longer initiate a public ICO.
Lightspeed also invested in Basis, a stable cryptocurrency that aims to compete with behemoths like Tether, a USD-backed cryptocurrency that has been set up by stock exchanges like Binance as a substitute for the US dollar. In April, Lightspeed led a $ 133 million fundraiser for Basis, with Andreessen Horowitz, Bain Capital Ventures and Google Ventures.
Based on its previous investments, Lightspeed is likely to be looking at the second strategy, which is to redefine Lightspeed's image of a technology-driven venture capital firm to a cryptocurrency investment company.
Lightspeed is expected to step up its direct investments in blockchain and ICO projects like Telegram and Basis and to be heavily involved in the cryptocurrency sector as one of the largest venture capital firms alongside Andreessen Horowitz and Digital Currency Group.
Although many billionaire angel investors and venture capitalists like Founders Peter Thiel, Mike Novogratz and Tim Draper have enjoyed monumental success by investing in bitcoin, the Ethereum and other major cryptocurrencies, most returns short-term blockchain projects that have the potential to become multi-billion dollar networks.