Cryptocurrency exchange platform FTX announced it has launched a $2 billion venture fund unit in a bid to invest in crypto startups.
Following the announcement, the venture unit will be headed by Amy Wu, a former partner at Lightspeed global venture capital firm.
“Sharing a life update! I’m thrilled to join @FTX_Official to lead FTX Ventures, gaming, and commercial initiatives reporting to @SBF_FTX, in the company’s next chapter as a leading global financial services and web3 company.” Wu tweeted.
According to Wu, the fund will be used to support crypto, web3, and gaming projects:
“We’re launching FTX Ventures today, a $2B fund for builders, by builders. We’re excited to support great teams across crypto, web3, and more,” she added.
The move by FTX is not new as mainstream cryptocurrency exchange firms setting up venture capital units to support crypto-related projects is becoming a trend in the crypto space.
FTX has joined up the ranks of several other crypto exchanges that have created a venture fund like Binance and Coinbase.
Surge in Crypto Funding
Seeing the potential and yields that the crypto space can bring to the table, venture capitalists keep pouring billions of dollars into the industry.
Venture capital funding for crypto startups has seen an exponential increase over the years, with the highest number coming in 2021.
Startups in the crypto industry were sponsored by a record $33 billion via venture capital funding last year, which was bigger than all previous years combined, according to a recent report.
Last year, venture capital firms entered over 2,000 deals with crypto startups which is more than twofold in 2020, thereby breaking the all-time high for venture capital crypto deals of 1,700 in 2018.
Meanwhile, just last week, NFT marketplace, OpenSea announced that it has raised $300 million in a Series C funding round led by Paradigm and Coatue Management which has increased its valuation to a whopping $13.3 billion.