exclusive report
Lattice's last fund was $60 million. This venture capital firm specializes in investing in early-stage crypto companies. Several investors are replenishing their funds during the rally.
Another crypto venture capital firm is planning to raise new funding.
Lattice, which has been investing in cryptocurrencies since 2021, is raising its third fund, according to documents filed with the U.S. Securities and Exchange Commission on Monday.
The size of the fund was not specified in the filing.
Lattice co-founder Regan Bozeman declined to comment to DL News, saying, “I can't share anything on that topic.”
The VC firm, which specializes in investing in early-stage crypto startups, raised $60 million in funding in 2022, triple its initial stash, Lattis told CoinDesk.
The company has invested in 81 projects, according to PitchBook data. Two of the company's more prominent investments are Immunefi, a cryptocurrency bug bounty platform, and Protocol Labs, the core developer of Filecoin, a decentralized cloud storage network.
8 billion dollars
Lattice rolled out its last fund amid a prolonged crypto bear market in 2022-2023. The third investment comes amid a torrid rise in crypto assets.
Investors in startups are cautiously trying to capitalize on the buzz.
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Cryptocurrency companies have raised more than $8 billion so far this year, taking their total raised in 2023 to more than $7.3 billion, according to data from DefiLlama.
Cryptocurrency startups have seen waves of venture capital funding over the years. Source: Defilama
Still, VC excitement about digital assets falls short of the capital rush of 2021 and early 2022.
In the first quarter of 2022, global VC investments in cryptocurrencies reached an all-time high of $11.2 billion, according to PitchBook data.
Since then, VC investments in cryptocurrencies have plummeted to a two-year low of $1.75 billion in the third quarter of 2024, according to Pitchbook.
From cryptocurrency bears to bulls
However, the fourth quarter could be different.
On Wednesday, Bitcoin surpassed $100,000 for the first time in the asset's history. Solana also hit a new all-time high in early November, and Ethereum is up more than 70% this year, although it is still on track to set new records this cycle.
According to CoinGecko, the total value of the cryptocurrency market has soared to an all-time high and is approaching $4 trillion.
And cryptocurrencies have found favor in the Oval Office. At least that will be the case when Donald Trump begins his second term as president on January 20th.
Mr. Trump has called himself the “cryptocurrency president,” has chosen a pro-cryptocurrency candidate to head financial regulators, and is considering adding a “cryptocurrency czar” to his administration.
It remains to be seen whether Trump's re-election will spark another boom in venture capital inflows to crypto startups, but some industry observers are optimistic.
In a September report analyzing crypto VC funding in Q3 2024, Robert Lee, senior analyst at Pitchbook, said: “A number of large funds are being actively raised. “Total funding will continue to grow over the next 12 to 18 months.”
Ben Weiss is DL News' Dubai correspondent. Any tips? Email bweiss@dlnews.com.
