'Everything's on sale': Reddit founder, Galaxy and Genesis execs raise big money

776's fund is called "Kryptos" and is expected to capitalize on the current bear market when it launches in October.

Reddit co-founder Alexis Ohanian's venture capital (VC) firm Seven Seven Six (776) is seeking to raise a $177.6 million crypto investment fund, while that current and former executives of Galaxy Digital and Genesis are raising a $500 million fund of their own.

According to an Aug. 29 report from The Information, 776's "Kryptos" fund will launch in October to capitalize on the current bear market. He pointed out that there are cut-price token discounts in the market right now that are ripe for the taking.

“Now is the best time to buy if you are very long in the industry. This item is on sale. Everything is on sale,” said Katelin Holloway, founding partner of Seven Seven Six.

The company registered with the Securities and Exchange Commission (SEC) to become an investment adviser in April, which allowed it to invest in crypto and manage crypto investment funds.

While 776 has invested in a slew of crypto/blockchain projects, this will be the venture capital firm’s first fund to focus solely on crypto assets. It will charge investors a relatively high management fee of 2.5% and offer a universal profit-sharing plan of 25%.

According to 776's website, its investment portfolio has exposure to Bored Ape Yacht Club creators Yuga Labs, Doodles NFT Project, Web3 fantasy franchise The Forgotten Runes Wizard's Cult, and startup Blockchain and node infrastructure API, QuickNode, to name a few.

According to a Form D of August 26