Nexo is the latest business to establish a VC arm with the goal of investing $150 million in Web3 and other crypto-related industries.
Nexo Ventures, a regulated and amongst the leading digital asset service providers – revealed today that they are launching a new fund aimed at investing in Web3-focused projects.
Nexo Ventures is devoted to accelerate the development and acceptance of blockchain technology by investing $150 million in a variety of early-stage retail and institutional ventures that are complementary to Nexo's core businesses.
Web3, DeFi innovation, payment and trade infrastructure, compliance solutions, as well as the metaverse, NFTs, and GameFi, will be the focus of the fund. It will also look into the viability of a model that allows Nexo users to invest alongside the fund, according to Metodieva, which would provide investor diversity and help users optimize their wealth.
Tatiana Metodieva, Nexo's Head of Corporate and Finance Investments, is in charge of the new endeavor.
"Blockchain technology, we believe, will alter the way we connect and use financial services," said Tatiana Metodieva, CFA, of Nexo. "Our goal is to elevate entrepreneurs who are advancing the crypto revolution." Nexo Ventures' mission is to "promote the acceptance of digital assets and the growth of the Web3 ecosystem."
"Also, unlike most standard investment funds, our investment value offer is unique. We're native to the digital asset sector and technology, and we know everything there is to know about it. We place a high value on strategic investments and strive to incorporate cutting-edge technologies into Nexo's product ecosystem and across our global market reach. We're looking into the possibility of allowing Nexo users to invest alongside us, leveraging our capabilities to help investors diversify their portfolios and maximize their wealth."
Nexo's head of communications, Troy Gravitt, told Blockworks, "It moved from a'side hustle' of the corporate finance team last summer to a full-on strategic aspect of the organization by January."
The fund will "promote the continuous use of digital assets and the expansion of the Web3 ecosystem," according to Tatiana Metodieva, the venture arm's head of corporate finance and investments.
Metodieva, a licensed financial analyst, added, "Also, our investment value proposition varies from most traditional investment funds." "We're native to the digital asset sector and technology, and we know everything there is to know about it." We place a high value on strategic investments and strive to integrate cutting-edge technologies into Nexo's product ecosystem and across our global market presence."
Nexo's in-house investment team made major investments in 1inch, BCB Group, BlockFills, Bware Labs, Interlay, Mizar, Qredo, Rain, Texture Capital, The TIE and Yield Protocol and other companies leading up to the formation of Nexo Ventures. Metodieva added that the fund's vast knowledge of space, combined with a track record of successful investments, will undoubtedly aid it in identifying prospective ventures.
According to a source familiar with the subject, the fund's near-term deal flow will "easily quadruple the number and magnitude of its recent investments."
Nexo launched its NFT-backed lending desk with Three Arrows Capital, a Singapore-based digital asset hedge fund, in December. Clients can utilize non-fungible tokens (NFTs) like CryptoPunks and Bored Apes as collateral for loans through the service.
Nexo is a MetaFi pioneer who, in December 2021, became the first crypto lender to accept NFTs as collateral for loans, establishing a market and giving liquidity to individuals who wish to HODL their blue-chip NFT assets through a relationship with Three Arrows Capital.
"Through Nexo Ventures, we have the chance to invest meaningfully in Web3, the Metaverse, MetaFi, and the ecosystem around the Nexo platform," Troy Gravitt, Nexo's Head of Communications, said. This is not just a sound commercial move, but also an investment in the technology's future and widespread adoption. It's all part of being good stewards of the business and laying the groundwork for the future."
The company offers a 300+ market pair Exchange, tax-efficient Instant Crypto Credit Lines, a high-yield Earn Crypto Interest suite, as well as sophisticated trading and OTC capabilities.
The Nexo wallet and top-tier custodial insurance are also trademarks of the blockchain expert. Nexo has handled over $75 billion for over 3,500,000 consumers in over 200 jurisdictions since its inception.