Crypto unicorn Coinswitch, backed by the likes of a16z and Sequoia Capital has unveiled a Web3 discovery fund of $10 million, through which it aims to invest in 100 startups in the space. The move is part of its strategy to grow the budding Web3 ecosystem in India, even as regulations around cryptocurrencies stay hazy.
Moneycontrol was the first to report that both CoinSwitch and CoinDCX are in talks with founders of some crypto and Web3 startups for investment opportunities.
The Web3 Discovery Fund will curate portfolio startups and provide access to marquee investor partners Tiger Global, Ribbit Capital, Coinbase Ventures, Sequoia Capital India, Woodstock Fund, and Elevation Capital (formerly SAIF Partners), and incubation partner Buidlers Tribe, said CoinSwitch.
Further, portfolio startups can apply for AWS Activate Portfolio and receive AWS credits, technical support, training, resources, and more to accelerate their growth.
“The venture programme is a result of our firm belief that India will be the launchpad for population-scale Web3 projects. To realise this vision of #MadeinIndia Web3, we have to identify and enable entrepreneurs and early-stage startups leveraging the potential of crypto to solve real-world problems unique to India. That’s the raison d'être of the Web3 Discovery Fund,” said Ashish Singhal, co-founder and CEO of CoinSwitch.
Founded in 2017 by Singhal, Govind Soni, and Vimal Sagar Tiwari, CoinSwitch hit the status of a unicorn later last year when it raised over $260 million in a funding round led by Coinbase Ventures and Silicon Valley fund Andreessen Horowitz (a16z), taking its valuation to $1.9 billion.
Rival CoinDCX, on the other hand, launched CoinDCXVentures which will be looking to invest in early-stage Web3 startups in India and globally. A fund of Rs 100 crore has been dedicated for this initiative which will be deployed in the next 12 months.
This comes at a time when crypto exchanges are branching out as trading volumes decline due to unfavourable macro headwinds and steep taxation in India.
Web3 founders are also more inclined towards these initiatives as they argue that this is more about community and not just venture capital. The community drives the project, so VCs cannot be the only parameter to succeed, but also need additional strategic help like value addition, expertise and mentoring.
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