Golden Gate Ventures has announced that it will spin-off a USD 10 million fund that will focus on cryptocurrency and blockchain investments. The new company will be called LuneX Ventures. Former Golden Gate Ventures head of growth Kenrick Drijkoningen was an influential part of making this new fund a reality.
Kenrick Drijkoningen teamed up with Golden Gate Ventures to create LuneX, and had this to say about the state of the crypto market, “Right now valuations have come down to more reasonable levels and the industry is moving from pioneers to early adopters, which is a great time to start investing.” Mr. Drijkoningen also had positive words to share about blockchain, which he sees as, “a foundational technology, on par with or possibly exceeding the Internet in disruptive potential.”
Golden Gate Ventures sees opportunities
The market for crypto assets that Golden Gate Ventures is entering has been rough on existing investors. The optimism that many entered the year with has evaporated, and the tokens for numerous platforms have been shredded over the last few months. A big plunge in prices is rarely reversed quickly, but as more investors enter the market, a bottom in prices is likely to emerge.
In an interview with Singapore-based e27, Mr. Drijkoningen said that LuneX Ventures has a “strong pipeline of five to 10 investments ready to go,” and that they had already made their first funding commitment to Sparrow Exchange.
Market pullbacks offer opportunities for established investors with a medium-term view of the market. LuneX Ventures will focus on making direct investments in companies, which may or may not involve tokens. They will likely draw interest from wealthy individuals. Golden Gate Ventures has a good track record of doing solid due diligence and finding early-stage companies that create returns for their investors.
After a string of funding programs for blockchain that reach into the USD billions, Golden Gate Ventures USD 10 million fund looks like a small player in a growing sector. The Korean government is working on deploying more than USD 200 million into blockchain projects, and the regional government in Nanjing, China, has announced a USD 1 billion+ blockchain development program.
The amount of money that is flowing into blockchain development is exploding, and it appears that Asia is becoming a leading destination for blockchain companies. Whatever is happening in the crypto market doesn’t seem to be dissuading major investments in blockchain technology. In fact, it may be part of the reason why experienced investors are entering the space.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.