Investor interest in Web3 is on the rise and has led to the launch of Old Fashioned Research (OFR). The winter of cryptocurrencies is driving investors to explore investment options more directly related to Web3.
In 2022, several investment banks provided bullish projections on the metaverse, including Citi, Goldman Sachs, and JPMorgan. For investors, however, identifying investment opportunities beyond the most publicized ones can be a challenge.
The opportunity to enter the space early has also caused some crypto industry executives to enter the more specialized space of the Web3.
Former Binance Executives Launch Web3 Crypto Fund
At the end of 2021, former Binance executives created one investment platform called Old Fashioned Research (OFR). Founded by managing partners Ling Zhang and Wayne Fu, OFR has created a $ 100 million multi-strategic fund. The strategy is to promote the adoption of cryptocurrencies in emerging market regions, including Latin America (LatAm) and Africa.
The team reportedly raised the $ 100 million through a limited partnership (LP) structure with LP, including angel investors, family offices and venture capital funds.
To date, the fund has invested in over 50 blockchain projects. Investments include WOO, Nestcoin and Metaverse Magna, Africa's largest play-to-earn cryptogame community.
According to the OFR website, the team will focus "on value-added investments where we can use our experience, resources and network to promote the growth and success of ecosystems and their players."
"Investments will be aimed at early stage incubation, venture capital, M&A and other special situations."
Funds focused on cryptocurrencies attracted media attention this year, particularly with cryptocurrency winter and cheaper valuations.
Crypto fund launches are jumping due to the growing demand for Web3 strategies
Last week, crypto VC giant Andreessen Horowitz, also known as a16z, launched a fund dedicated to Web3 blockchain and gaming startups.
According to the report, "a16z wants a massive slice of the Web3 games and metaverse pie."
It also has "plans to channel millions of euros into the companies building the next iteration of the Internet."
This week Andreessen Horowitz made headlines again with the launch of her fourth fund. According to Reuters, VC's cryptocurrency store raised $ 4,5 billion for its fourth cryptocurrency fund.
Such was the furore over the Web3 that Hang Seng Indexes announced the launch of the Hang Seng China Metaverse Index.
According to the May 23 announcement:
"Developments in the metaverse concept, which includes virtual reality (VR), games and other digital experiences using advanced technologies in virtual spaces, have captured the attention of people around the world and are rapidly growing in popularity as an investment theme among investors ".
The announcement goes on to say that:
"Based on this trend, the Hang Seng China Metaverse Index aims to reflect the performance of mainland Chinese companies engaged in metaverse-related businesses, value chains and development."
In the interest of decentralization, OFR and other companies will be the key to driving growth in the Web3 space.
For investors, this also means investment options will extend beyond Web3 cryptocurrencies, including Decentraland (MANA) and The Sandbox (SAND).