Reddit co-founder Alexis Ohanian’s venture firm 776 Management plans to double down on crypto in the coming year, having raised $500 million across two new funds, the Wall Street Journal reports.
The newly launched Funds II include an early stage-focused $300 million vehicle, and a $200 million fund which will invest in Series A and B rounds. The two new funds will push 776’s portfolio to a majority stake in crypto investments in 2022, Ohanian told the Journal.
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Currently, crypto investments account for about 40% of the firm’s portfolio, according to the Journal. They include play-to-earn pioneer Axie Infinity, bitcoin rewards startup Lolli and crypto tax company CoinTracker.
The oversubscribed fund raising brings 776’s total assets under management to $750 million, the firm said in a press release.
VC money is flooding into crypto at the moment, with firms such as Paradigm, Sequoia and Tiger Global deploying billions of dollars into “Web 3,” a more decentralized version of the existing internet.
Ohanian was one of the early investors in Coinbase, the San Francisco-based cryptocurrency exchange which went public last year at a valuation of over $85 billion. Most recently, 776 teamed up with Ethereum scaling platform Polygon to create a $200 million initiative to invest in social media and Web 3-based projects.
“We feel a deep responsibility to help usher in this new age of technology, with intention – both through the founders we choose to invest in and how we support them in their important work,” said Ohanian in a statement.