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Why Web3 funds are springing up like mushrooms
With valuations falling and the appetite of some major groups, funds linked to the crypto universe are on a roll.
150 million euros! At the end of September, France's Trail launched a Web3 fund to invest in crypto start-ups linked to luxury, culture and sport. It's a fairly unprecedented move in the sector. And yet the initiative, backed by Stake Capital, hasn't caused much of a stir.
If the launch has been so discreet, it's because Trail is not the first player to jump into the Web3 deep end. In recent months, several other French funds have emerged. "
Ledger has teamed up with Cathay to create a €100 million fund. XAnge has also created its structure with a pocket of €80 million. Smaller entities such as Atka are also very active. And other funds are in the pipeline. "It's the best time to invest in Web3," explains Marguerite de Tavernost, who is steering the Cathay-Ledger fund on Ledger's side.
The market downturn has in effect acted like a needle in the valuation bubble. "Prices had reached insane levels and the bear market has had its effect," confirms Ivan de Lastours, head of crypto and blockchain at Bpifrance, which is very active on these subjects.
Only a few months ago, some companies that had never delivered a single product could be valued at several tens of millions of dollars! How much have these valuations fallen since then? 10%, 20%, 30%, even 50%? It's always difficult to know. It all depends on the project and its potential. What is certain is that there are now many more opportunities, and funds are keen to take advantage of them.
They are not the only ones. In addition to falling valuations, the success of Web3 funds can also be explained by the growing appetite of traditional players. These "players" are banks, insurers and companies.
"It's a classic. Officially they're not doing anything, but in reality quite a few institutional players are interested in cryptos and Web3," points out Julien Bouteloup, the founder of Stake Capital, which has therefore invested in Trial's Web3 fund. "Institutional players want to do Web3, but not directly", agrees Luc Jodet, head of XAnge's Web3 fund. And they should be doing more and more of it in the coming months 👀.
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