This article has all you need to know about ventures, how they work, and top projects with low mid-market caps invested by top ventures.
What are Ventures and How Do They Work?
A venture is a form of investment where firms invest capital in emerging markets. In this context, firms invest capital in a particular crypto project and they get equity in the company in exchange. For instance, Three Arrows Capital emerged as the largest shareholder following the Grayscale stake.
Ventures are investment firms that finance growing or startups tech-focused companies, traditional currencies, DeFi, blockchain, etc. These firms only invest in companies that have a growing market or have high tendencies of being a great investment. In return, these firms may receive about 50% ownership or a lesser percentage. If the company a venture invests in eventually goes public, the venture makes a profit. In most cases, the two firms benefit from the investment. The venture firm can also choose to sell some of its shares to other investors.
Ventures work in different stages and it depends on investors to decide the stage they would like to invest in. Venture capital is not complicated at all, what matters is that investors must decide at what point do they want to invest in that new company. Some of the ways ventures work include;
The crypto space
Venture in the crypto space is financing the development and operation of startups in the cryptocurrency market. Venture financing keeps surging despite the volatility of the crypto market because it is a big investment opportunity. They aim to achieve mainstream adoption of cryptocurrency. While these ventures seek equity and other assets in return, they want to make crypto a less risky investment.
High-risk investment
DeFi projects and Non-Fungible Tokens invested by these top ventures are high-risk investments. Although, they have introduced new projects to the market. Ventures invest in these blockchain projects despite the risk because they are aware of the higher returns. By calculating and managing risk, ventures aim to mitigate possible losses.
Legitimacy
Through these venture investments in crypto projects, most startup projects become legitimate. By raising funds, ventures reduce the barrier to market entry. Some of the work ventures do ensure the success of these projects is market research, speculation of profit, etc. Ventures are fund managers who also specialize in company valuation.
Top Ventures and their Supported Projects
1. Three Arrows Capital
Three Arrows Capital is one of the top ventures in the crypto space. They have recorded 30 investments. One of its recent projects is BlockFi which they have invested over $4.3 million. It has up to 16 advanced technologies for its websites which include SPF, Viewport Meta, mobile compatibility.
Three Arrows Capital is an entrepreneurial fund manager located in Singapore. It offers returns in risk-adjusted projects. Apart from offering returns, this venture trades traditional currencies in emerging markets with Ethereum being its largest cryptocurrency holding. It assists the development of DeFi, enterprise applications, and other transactions on the blockchain network. Some of its top projects include;
- • Orca (ORCA)
With a mid-market cap of $168 million, Orca is the simplest cryptocurrency trading platform operating on Solana.
- • Jetcoin (JET)
JET is an Ethereum platform trading on 3 active markets with an estimate of $84 million mid-market cap
- • GRO DAO TOKEN
This project seeks to build simple and unique DeFi products, leverage yield, and offer deposit protection.
- • Tranchess (CHESS)
This exchange has a mid-market cap of $108 million and it offers improved yield returns, a low-cost leveraged position, and no impermanent losses.
- • FutureSwap (FST)
FST is a perpetual future protocol with a mid-market cap of $64 million that offers live pricing, capital efficiency.
- • dHEDGE DAO
This project trades synthetic assets on the Ethereum blockchain and its mid-market cap is $18.8 million.
2. Coinbase Venture
Coinbase Ventures is an extension of the Coinbase cryptocurrency exchange majorly providing blockchain companies with capital. Coinbase venture supports Solana, a blockchain network, crypto services like BlockFi, and DeFi projects. It also invests in Non-fungible Tokens. This venture primarily seeks to assist the crypto ecosystem by raising capital.
While return is used to measure the success of every investment, Coinbase seeks greater benefit which includes the eventual displacement of tech giants by cryptocurrencies.
While Blockchain technology and cryptocurrency are on the rise, Coinbase ensures that they are strong enough to displace traditional currencies. Coinbase invests in these startups because it is growing to become a maximum investment. Some of the top projects invested by Coinbase ventures include;
- • Rarible (RARI)
Rarible is an NFT platform with a mid-market cap of $111 million that creates NFTs for digital content like artworks and game items.
- • Instadapp (INST)
Instadapp is an advanced Decentralized platform that allows leveraging with a mid-market cap of $79 million
- • Solend (SLND)
This lending protocol allows users to earn interest on deposits, borrowed assets that are scalable, fast, and offer low fees.
- • Vega Protocol (VEGA)
This project creates a decentralized market and trade margin derivatives with a mid-market cap of $85 million.
- • NAOS Finance (NAOS)
This project allows users to earn competitive yields from high-income financial assets with $46 million.
- • Saffron.finance (SFI)
Saffron is a protocol for tokenizing on-chain assets, including contracts that otherwise impair access to utilized capital
3. Binance Labs
Binance lab is a top investment company in the crypto space that supports professional and technical teams and aims to build a decentralized web.
Binance Lab invests in blockchain technology and startups by raising capital to industry projects to assist the growth of a larger ecosystem. This entrepreneurial investment seeks to authorize the Decentralized Web. It invests in professional teams that will help build decentralized webs. Binance Labs has been active for over 3 years in five continents. It is available in over 25 countries and has invested in more than 100 projects. Binance Labs is the funding arm of the world’s largest crypto exchange, Binance.
Some of the top projects it has invested in are;
- • OpenOcean (OOE)
OpenOcean is a trading platform that offers trading efficiency and the best transaction rates on both centralized and decentralized exchanges.
- • HOPR
HOPR, a decentralized privacy startup offers absolute control over privacy, data, and Metadata.
- • TROY (TROY)
It is a Master-level Trading Platform for crypto trading and asset management.
- • Wing Finance
Wing Finance is a decentralized lending platform for digital assets.
- • COCOS BCX
Cocos-BCX (COCOS) is a cryptocurrency exchange operating on the Ethereum platform.
- • Xend Finance (XEND)
This platform is dedicated to ensuring that credit unions, individuals, and cooperatives in the global world earn higher interests in stable currencies.
4. Polychain Capital
Polychain Capital is an investment firm based in San Francisco, United States. It raises funds for digital assets. It invests in cryptocurrency protocol and companies, and blockchain technology. Also, it helps manage global blockchain assets for increased returns. It has a team of competent and professional experts in cryptocurrency protocol.
some of its top projects include;
- • HandShake (HNS)
HandShake is a decentralized authority that seeks to offer a more secure peer-to-peer system.
- • Liquidity (LQTY)
With its mid-market cap, Liquidity (LQTY) is a cryptocurrency exchange platform operating on the Ethereum network that provides free liquidity rates.
- • Solend (SLND)
Solend is an autonomous lending platform on Solana with a mid-market cap of $57 million.
- • Orca
This is a cryptocurrency exchange built on the Solana blockchain that offers an easy, fast, and user-friendly trading platform.
- • Keeper DAO (ROOK)
KeeperDAO, a platform with a mid-market cap of $154 million seeks to create a more secure, profitable DeFi, coordinating on-chain profit by providing infrastructures.
- • DFX finance (DFX)
A decentralized foreign exchange protocol optimized for stable coins with a mid-market cap of $23 million.
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Written by: Narender Charan
