Momentum Capital, a cryptocurrency-focused fund based in San Francisco, has just received a large $10 million investment from Canada’s BM Fund. The funding infusion was revealed to have occurred in July of this year in a press statement that was released on a Monday.
The new funding will be used to support early-stage Web3 projects as well as the growth of Momentum Capital’s staff. The fund’s main goal is to discover the next ground-breaking company in the cryptocurrency sector, frequently referred to as the “Apple” of cryptocurrencies.
BM Fund’s founder, Carmen, outlined their justification for investing in Momentum Capital during downturns in the market by noting the fund’s remarkable skill and performance record. The decision to invest in Momentum Capital amid a downturn, according to Carmen, “underscores their unmatched proficiency.”
Momentum Capital has stated its intention to focus on Web3 potential as the cryptocurrency sector moves into its next stage.
The company declared its commitment to funding and supporting Web3 initiatives that have inherent value. Momentum Capital’s managing partner, Gary, said the company “remains committed to investing in and fostering web3 ventures of intrinsic value. Our attention will shift to nurturing global builders as we navigate the market’s currents over the next six to twelve months, with a strong emphasis on web3 infrastructure, regional web3 prospects, and web3 apps.
Momentum Capital serves as a single family office’s direct investing division. It started out as a mid-market private equity investor in 2002 but has since transformed into a diverse investment organization that looks for opportunities in the financial, real estate, venture capital, and private equity markets.
Momentum Capital’s recent success in obtaining money corresponds with a rise in investor interest in cryptocurrency initiatives. Flashbots, a provider of Ethereum (ETH) infrastructure, raised an amazing $60 million in its Series B funding round, which was organized by the San Francisco-based technology investment company Paradigm.
Similar to that, Futureverse, a crypto-tech and game business, raised $54 million in Series A funding to assist its growth in the metaverse industry. The funding round was led by the venture capital firm 10T Holdings, and Ripple Labs, the company that created the XRP Ledger, also participated.
Following a relatively slow period for venture capital funds specializing on cryptocurrencies, there has been a resurgence of interest in cryptocurrency fundraising.
The founder of Mysten Labs, Evan Cheng, noted in an interview earlier this year that the recent increase in AI funding has taken funds away from the cryptocurrency sector. He saw that a sizeable percentage of the venture capital funds that were previously allocated for cryptocurrency were now going to firms in artificial intelligence.
Cheng also mentioned that due to the recent decline in the cryptocurrency market, funding for early-stage crypto firms is still possible, but at lower values. Only the top-performing businesses are now able to receive late-stage capital, since it has grown more difficult to do so.
