M31 Capital Launches $100M Web3 Investment Fund with $50M in Commitments to Date

The investment fund, which was founded by one of Bitcoin's earliest investors, said the current market cycle is the first time in a decade that prices and fundamentals have diverged so much.

Crypto-focused investment firm M31 Capital has launched a new investment fund dedicated to Web3 companies, further highlighting the industry's shift towards decentralized internet projects.

The M31 Capital Web3 Opportunity Fund will invest up to $100 million in token projects and private equity opportunities within Web3, the company announced Tuesday. Initially, the fund will invest in projects to build decentralized Internet infrastructure and applications. Presumably, the new investment vehicle will be a "liquid venture capital fund", a structure that gives investors liquidity after only a 12-month lock-up period.

M31 clarified that it has already secured $50 million in investor commitments and will raise an additional $50 million before capping the fund at $100 million.

Despite the ongoing crypto bear market, 2022 has seen a proliferation of investment funds dedicated to Web3 projects, a clear sign that investors are seeing value amid the turmoil. As reported by Cointelegraph Research, Web3 has dominated venture capital interest this year. In the second quarter alone, Web3 projects accounted for approximately 42% of all individual transactions in the blockchain space.

Related: Spain's biggest telecommunications brand takes a deep dive into Web3

Crypto markets have shown a high degree of correlation with traditional equities for much of 2022, leading some investors...