UAE VC firms launch joint fund for Web3 ecosystem worth $1 billion

Venom Foundation and Iceberg Capital have teamed up to launch a new fund for the Web 3 ecosystem to stimulate innovation in the space.

The fund, known as Venom Ventures Fund (VVF), will place a premium on firms building on the blockchain. A press statement from both entities confirms that the fund will invest in blockchain projects focusing on decentralized applications (DApps), decentralized finance (DeFi), blockchain-based gaming, and other payment services.

Worth $1 billion, the fund will be open to firms in the pre-seed and Series A stages, aiming to be the bridge where “old money meets the new.” Venom Ventures confirms that selected projects will be offered a range of incentives apart from funding, including technical, regulatory, and marketing support.

On its website, Venom Ventures mentions that it has considerable experience in Web 3, spanning over three years. With its accelerator program, the fund says that projects will get access to all the help they need to exceed in the blockchain space.

“With a steadfast commitment to identifying and investing in highly promising, scalable and consumer-focused companies within the rapidly emerging web3 ecosystem, VVVF is actively investing and building a portfolio of leading-edge web3 firms that are poised to achieve widespread adoption and achieve significant growth,” Peter Knex, an executive at VVF, said.

The announcement of the fund was accompanied by a $20 million funding round of Numi Metaverse, suggesting that VVF is also keen on exploring virtual worlds despite a difficult 12 months for the industry.

Venom Ventures Funds (VVF) describes itself as a “blockchain-agnostic” fund “determined to make a meaningful impact by leveraging its financial strength to provide value.”

Funding dries up for Web3

Institutional investors in the virtual currency ecosystem are treading with caution, given the tumultuous period facing the industry. A fallout from the slew of tragedies is the exit of capital from the space and a reluctance of investors to plow in more funds for the industry.

Web3-focused funds are now few and far between as VCs opt to wait out the regulatory thunderstorms. In view of the large-scale collapses that plagued the industry, regulators worldwide are scrambling to police the sector, and analysts are predicting sweeping changes that could change the face of virtual assets.

Keeping up with the trends, serial Web3 investor Animoca Brands slashed its widely anticipated Web3 fund by half to $1 billion with a keen focus on non-fungible tokens (NFTs) and the metaverse.

Watch: Blockchain Venture Investments: Driving Utility for a Better World

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