May 26, 2022

The NFT world is never boring until the money stops. As investors continue to pour billions into the industry, albeit at a slow pace, more cryptocurrency buyers are turning away from supporting platforms, projects, and the most non-fungible NFT token.

While dedicated funds dedicated exclusively to NFTs as an asset class are starting to emerge, this is still a risky space for large institutional firms. However, this does not prevent these investors from becoming LPs in NFT funds themselves. Several prominent Silicon Valley crypto venture capitalists have backed NFT Fund, a new startup led by Andrew Jiang and Todd Goldberg.

The $30 million Curated Foundation is in charge of buying and holding NFT artifacts. The fund is supported by crypto investors with LPs, including a significant part of the a16z investment team (supported by Marc Andreessen, Chris Dixon, Andrew Chen, Ariana Simpson and John Lai), as well as Alexis Ohanian, Justin Kahn. Avichal Garg and Curtis Spencer of Electric Capital, as well as several other investors and founders in the space.

The fund plans to invest about half of the funds in the so-called NFT blue chips, which include popular projects such as Cryptopunks, Art Blocks and Bored Apps, as well as the work of popular artists who sell unique NFT works. The other half of the fund will be what Jiang and Goldberg consider a “high potential collection” of artists with a small current market.

“NFT assets are something that we think will matter a lot in the next decade, orders of magnitude more than now, because NFTs give us a digital way to invest in internet culture,” he said. . From Goldberg to gaming-updates in an interview. “We want to be a very high signal builder who gets the best resources and is also helpful to creators and developers.”

Goldberg says the company may also consider releasing its own NFTs in collaboration with some of the artists in its portfolio.

The NFT market is still growing by the billions, but investment momentum has slowed in recent weeks. According to blockchain analytics tool DappRadar, the OpenSea platform has generated $2.3 billion in transaction volume over the past 30 days, down 40 percent from the previous 30-day period.

“The market has been volatile, but we are entering a bear market, which is actually good for the fund because we are very patient,” says Goldberg. “We are waiting for the best opportunities to enter these positions and then we will hold these things for a long time. Long-term patient capital is not a big deal, but I think in this market where everyone is very focused on the short term, it’s really a strategic advantage. ,

General fund manager Jiang previously founded hardware startup Sentio and YC-backed nonprofit Bayes Impact. Goldberg, who co-founded ticketing startup Eventjoy, already has a separate fund that invests capital in startups that he runs with Superhuman founder Rahul Wohra. Several founders of the fund’s portfolio are donor curators, including the founders of Dapper Labs and startup NFT Manifold.

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