Sigma Capital, a new cryptocurrency venture capital firm founded by former Cypher Capital executive Vineet Budki, has announced its first fund.
Budki told The Block that the fund’s target is $100 million, with about $40 million in pre-commitments. He added that the first closing is expected on June 30 and the final closing is expected 18 months later.
Budki said advance commitments have come from cryptocurrency funds, high-net-worth individuals and angel investors. He declined to name the investors but said they had previously jointly backed more than 200 startups such as Manta Network, Humanity Protocol and Casper Labs.
Sigma Capital’s debut coincides with strength in the cryptocurrency market, with Bitcoin recently surging above $100,000 and increased investor activity. The company aims to capitalize on this favorable environment through its first fund.
“Cryptocurrencies haven’t even started yet. It’s too early,” Budki said. “The control and wealth that real investors will have is the key, not just making money in the next 10 years.”
Aiming to be the ‘Sequoia/Softbank of the cryptocurrency world’
Budki said Sigma Capital aims to become the Sequoia or SoftBank of the cryptocurrency market, citing a track record of notable early-stage investments by him and his team at Cypher Capital, Phoenix VC and other companies. These include TON, Solana, Sui, Sei and Berachain, Budki said.
Sigma’s planned fund will reportedly allocate investments across three categories over the next three years after its first close: 50% to early-stage startups, 40% to liquid tokens and high-yield DeFi strategies, and 10% to funds of funds. . To the bookie.
The portfolio is expected to include up to 100 early-stage venture deals with an average check size of $500,000, up to 25 liquid deals in the $2-3 million range each, and up to 10 fund deals with an average check size of $1 million. Added.
In terms of verticals, Sigma plans to invest across DeFi, blockchain infrastructure, real-world asset (RWA) tokenization, gaming, and metaverse.
Budki said he prefers a founder-centric investment approach that prioritizes strong founders over specific sectors due to the potential for pivots. Timing of investment is also important. Bear markets favor infrastructure and large capital raisings, while bull markets focus on consumer-facing products such as gaming, DeFi, and RWA tokenization.
Sigma will be headquartered in Dubai and Singapore and regulated in the Cayman Islands, Budki said. The company plans to have about 30 employees, he added.
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