Blockchain investor Fortis Digital Ventures is closing a $100 million cryptocurrency fund that intends to close the gap between the conventional and new finance sectors, even as more traditional financial institutions enter the cryptocurrency space. Fortis Digital Ventures co-founder and managing partner Mike Boroughs said to TechCrunch, “By developing an investment fund focused on blockchain prospects, we get to spend our time performing due diligence on people and software in web3, which provides us insight into what is missing in the industry.
Boroughs, who previously co-founded an RIA with $250 million in assets under management, and Chris Capriccio, his co-founder and the former vice president of engineering at LegalZoom, will handle the new fund. They are both former hedge fund veterans and engineers. According to the business, the fund intends to simplify blockchain investing through asset allocation, risk management, and position sizing in cryptocurrency. While it will cater to traditional investors, only wealthy customers will be allowed to attend; according to a spokesman, individuals interested must invest a minimum of $250,000 and have a net worth of at least $2.5 million.
The vehicles to invest in it through the conventional methods, such brokerage accounts, are severely inadequate, said Boroughs, so we want to make sure the individuals we deal with have access to it. The majority of conventional investors, he observed, lack “the stomach or skill set” to invest profitably or over the long term due to the volatility and technical complexity of cryptocurrencies. Despite the fact that the market may currently be pessimistic due to the crypto-related confusion that prompted a decline in prices last week, Boroughs said Fortis’ investing plan is standing firm.
The free money that was flowing to support even dubious ideas and enterprises is going to slow down in the overall market, he said. While a short-term setback, we see this as a long-term advantage since it forces initiatives to stand on their own merits rather than relying solely on the phrases “crypto,” “blockchain,” or “web3” in their marketing materials. He said that although poor initiatives might fail, those with great usefulness, high scalability, and low adoption hurdles will flourish.
The company will concentrate on investing in web3 startups that are creating better user experiences and solving real-world problems for individuals or businesses. In order to achieve broad mass acceptance, he added, “Web3 has a significant need for an improvement in user experience. We believe the biggest chances will be discovered at the intersection of outstanding innovation and wonderful user experience.” For investors prepared to stick with it and sift through the debris to uncover the diamonds, we see this as a significant opportunity.