Golden Gate launches crypto, blockchain fund

The spin-out is being called the first dedicated crypto and blockchain venture capital fund in Southeast Asia. The fund, which is reportedly targeting $10 million, will invest globally in companies seen as having scalable infrastructure and interoperability, practical custody and security systems, and services that are capable of driving broader adoption of the technology.

LuneX’s mandate also allows it to invest directly in tokens offered by start-ups. To date, VC investment in cryptocurrencies and token sales – also known as ICOs – has been significantly limited by LP agreements and regulatory regimes that classify the virtual assets as securities. Securities compliance requirements have typically represented a discouraging accounting burden for early-stage crypto companies.

Golden Gate noted that Singapore represented an advantageous base for a dedicated crypto fund due to the local government’s support for the sector, including indications from the central bank that it would not regulate certain kinds of non-monetary tokens. Regulation aimed at curbing token investment-related fraud has resulted in ICO bans in Greater China and Korea. 

“Traditional investors currently struggle to access this new asset class: there are legal, custodian, banking, tax, and other operating obstacles to overcome,” Drijkoningen said in a statement. “LuneX Ventures has been built from the ground up to address all these. We have gone the extra mile to make sure the fund is fully compliant while providing easy access to accredited investors.”

Drijkoningen has been involved in much of Golden Gate’s activity to date in the blockchain space as well as sectors where the technology has proven relevant such as e-commerce and gaming. He will be joined at LuneX by Tushar Aggarwal, a blockchain specialist and former financial technology mentor with SuperCharger Fintech Accelerator in Malaysia, who has assumed the title of associate.

Founded in 2011, Golden Gate has more than $100 million of assets under management across three funds. Its first and second funds closed at $10 million and $60 million in 2012 and 2016, respectively. A third vehicle was launched earlier this year and said to be seeking to raise $100 million. Portfolio companies include Omise, a Thai fintech company Omise that raised a $25 million token sale last year. 

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• Topics
• Southeast Asia
• Venture
• Technology
• Fundraising
• Singapore
• Golden Gate Ventures
• ICO
• Cryptocurrency
• Venture