OP Crypto, a crypto venture capital firm founded by former Huobi CEO David Gann, is launching a new fund to support emerging fund managers focused on early-stage crypto investments.
The fund, called “OP Funds of Funds I,” has secured commitments of $50 million from major companies such as FTX affiliate LedgerPrime and FJ Labs.
OP FoF I will target a $100 million fixed cap, as the founders plan to close the fund by the end of the third quarter, Lucas He, chief operating officer of OP Crypto, told Cointelegraph.
The fund will identify and support crypto fund managers with unique vertical expertise in areas such as infrastructure, decentralized finance, non-perishable tokens, metaverses, gaming and more.
He noted that while the fund has a “diverging focus” on the Asia Pacific region, it will continue to invest on a global scale and seek exposure to fund managers in regions such as Latin America, Africa, India, Southeast Asia and others. .
FoF investors will have access to deal flow from all managers within the vehicle and will have the opportunity to multiply specific projects via co-investment opportunities.
OP FoF I is the second fund to invest in crypto fund managers originated by OP Crypto. In June 2021, the company launched the $50 million OP Ventures I Fund, which targets seed and seed projects across the Web 3.0 space. The fund was backed by major companies and institutional investors in the industry, including Mike Novogratz’s Galaxy Digital, venture capital firm Digital Currency Group, Bill Ackman and Alan Howard.
“OP stands for openness, operation and opportunism,” he said, adding that these are the “traits that the fund attributes to.” The CEO went on to say that despite the current downturn in the market, there are plenty of investors looking for exposure to cryptocurrencies, saying:
“To our surprise, there is actually a lot of demand that has been picked up because people don’t know exactly where the capital is best placed in the midst of the current bear market.”
He also serves as Head of OP Crypto Research, and will serve as General Partner at OP FoF I. He is a cryptocurrency veteran since 2013 and has previously held investment and FoF positions at Huobi Capital and State Street. The founder of OP Crypto, Jan, will serve as the president and advisor to the fund.
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Gan and He led Huobi’s FoF strategy, distributed capital on Huobi’s behalf, and were core investors in Multicoin Capital, Dragonfly Capital, and 1kx. “All of these investments were made in early 2018 when all of these funds had less than $50 million in assets under management,” he stated, adding that these funds eventually reached a level above $1 billion three years later.