In Brief:
- FTX has announced the formation of FTX Ventures, a $2 billion venture capital fund.
- FTX Ventures has hired Amy Wu to lead the fund.
- FTX Ventures will debut with a team of eight individuals from the new home base of the Bahamas.
Sam Bankman-Fried’s cryptocurrency exchange FTX has announced the formation of FTX Ventures, a $2 billion venture capital fund. The fund’s primary focus will be on blockchain and Web3 technology, with investments in “social, gaming, fintech, software, and healthcare” thrown in for good measure.
FTX Ventures has hired Amy Wu, a former Lightspeed Ventures partner, in addition to opening its $2 billion venture capital fund. Wu, who moved to FTX from Lightspeed Venture Partners, said the fund might deploy all of the capital by next year, but that relies on the market opportunities FTX identifies. FTX raised $420.7 million in October and was assessed at $25 billion.
Wu said that the fund will make targeted, concentrated bets on crypto startups.
“It’s not necessarily related to FTX’s approach,” she explained. “The main goal is to hasten the deployment of blockchain technology. We want to be known for the value we contribute by using FTX’s resources, knowledge, and worldwide network,” she continued.
FTX Ventures will debut with a team of eight individuals, including five investors after Wu relocates to FTX’s new home base of the Bahamas. She explained that the team’s investment strategy is “by builders, for builders,” and that it will take advantage of FTX’s growing worldwide reach and resources.
“We can white-label all of that for the world’s largest gaming corporations, as well as young independent studios looking for a turnkey solution,” she said. “We’re ecstatic to be a key player in the gaming business as a technology provider and vendor.”
According to the report, FTX Ventures is one of the industry’s largest funds with Paradigm topping the list. FTX and its founder, Sam Bankman-Fried, provided the entire funding. It is possible to invest as little as $100,000 or as much as hundreds of millions of dollars. FTX has quickly risen to become one of the most valuable and well-known cryptocurrency startups in less than three years.
