- Uncorrelated Ventures, a venture capital firm, successfully secured $315 million for its latest fund, which focuses on crypto and software investments.
- Uncorrelated Ventures has supported various cryptocurrency initiatives, such as Compound, Cosmos, dYdX, Helium, and Uniswap, in the past.
Uncorrelated Ventures, the VC firm backed by Bain Capital, has successfully secured $315 million for its latest fund, which will primarily focus on software and crypto investments. General Partner Salil Deshpande affirmed the news in a confident email statement.
Contrary to the challenging landscape of VC deals in the crypto industry throughout 2023, Deshpande expressed the ease with which investors were attracted to the fund. Despite the setbacks faced by the industry, the firm encountered “no difficulty” in raising the substantial capital.
The California-based company plans to allocate approximately 80% of the new fund to early-stage traditional software investments, with the remaining 20% dedicated to supporting crypto startups.
Having previously supported prominent crypto projects such as Compound, Cosmos, dYdX, Helium, and Uniswap, Uncorrelated Ventures, according to its website, emphasizes the real-world applications of the technologies it invests in. Deshpande, in a statement to Bloomberg, emphasized the importance of proper valuation, acknowledging that past use cases may have been overhyped and overvalued.
Established in 2020 after Deshpande’s departure as Managing Director from Bain Capital, Uncorrelated Ventures manages assets worth $700 million, invested across a diverse portfolio of over 100 companies.
Crypto venture funding hits multi-year lows
Last year witnessed a significant decline in crypto venture funding, reaching multi-year lows. This downturn was attributed to the notable failures and bankruptcies of prominent firms such as FTX, Celsius, and Three Arrows Capital.
In Q4 2023, funding plummeted to $552.8 million, marking a staggering decrease of over 95% from the peak of $13.5 billion recorded in Q1 2022. This figure represents the lowest level since Q3 2017, as reported by The Block Pro deals dashboard.