Reddit co-founder Alex Ohanian recently raised $500 million for his venture capital firm 776 Management LLC.
He said that the new funds will primarily be used to double investment in cryptocurrency startups.
More funds geared towards the crypto market:
According to the Wall Street Journal, Ohanian has shown great confidence in the growing business and crypto software.
As such, the company has 40% of its current funds in the sector, with the rest going to other areas such as space exploration, climate and food.
Regarding the company’s investments in crypto, Mr. Ohanian said:
Cryptocurrencies will control the majority of the wallet by the end of this year.
The company’s new capital goes towards two new funds.
The first, worth $300 million, called “776 Fund II,” was established to support early-stage cryptocurrency startups.
The other is the $200 million Arete I fund, which focuses on more mature growth companies that host larger Series A and B funding rounds.
One of the main points that the company focuses on is getting women more involved in the cryptocurrency market.
According to an August study by CNBC, there are twice as many female cryptocurrency investors.
The company also wants to simplify the use of crypto-based products, to the point that customers don’t even need to know they are interacting with blockchain technology.
Current industry examples of this lie in crypto-linked credit and debit cards, which allow merchants to accept crypto payments without knowing it.
Reddit founder’s love for web 3:
Last year, Reddit partnered with Solana Labs to invest $100 million in decentralized social media.
Solana’s high-performance blockchain can help realize the dream of Web3 – combining the features of Web2 with Web1 user ownership and control.
A month later, he doubled down on a very similar initiative with Polygon for $200 million.
Investor Ohanian has a lot of experience in the cryptocurrency space already, having been a core investor in Coinbase, Opendoor and Patreon.
Of course, his experience with Reddit dating back over 15 years makes Web3 a natural blend of both interests.
In June, Ohanian stated that he owns a lot of Ethereum, believing it has the greatest potential in the crypto ecosystem.
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