1Confirmation, a crypto venture firm, announced on Wednesday that it has closed a second fund at $45 million.
The firm had been aiming to close this fund at $60 million, but fell shy, having raised amid the bear market alongside rival venture firms like Pantera, which recently closed its DLT fund at $160 million. The news comes hot on the heels of Proof of Capital’s $50 million raise, announced last month.
Launched in August 2017 in San Francisco by former Coinbase employee Nick Tomaino, 1Confirmation’s first fund closed at $26 million with contributions from Mark Cuban and other financial heavyweights like Peter Thiel, Chris Dixon, and Marc Andreessen. It was the second crypto-focused VC fund at the time, following only NYC-based Placeholder Capital, launching amid the bitcoin peak of 2017.
1Confirmation has so far deployed its funds over 17 publicly disclosed investments, including Coinbase, Harbor, and Veil. Still, the firm had one notable casualty in its portfolio in 2018 in Basis, the now-defunct stablecoin.
As for the investment focus of the new fund, Tomaino said in a blog post that they will stay connected with crypto-native users and avoid the “institutional aura” that most investment firms have. Earlier reports also suggest that the second fund will target early-stage projects by securing both equity and tokens.
“Today, the current total market value of crypto assets is ~$223B and investment/speculation is the only mainstream use case. We think in the next five years, that total market value will surpass $1T as the investment/speculation use case continues to grow and other mainstream use cases emerge,” Tomaino wrote.