New Zealand VC Launches $5 Million Web3 and Crypto-Focused Fund – Finance Bitcoin News

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New Zealand-based venture capital firm Global From Day 1 (GD1) recently said it had launched a $5 million Web3 and crypto-focused venture capital fund to back local startups. The fund will invest in pre-seed to Series A companies across decentralized finance (defi), decentralized autonomous organizations (DAOs), non-fungible tokens (NFTs), and Web3.

GD1’s Web3 and Crypto Strategy

In a boost for New Zealand-based startups and local investors, GD1 has launched a $5 million Web3 and crypto-focused venture capital fund. The fund, known as GD1 Crypto Fund 1, will be led by cryptocurrency and Web3 expert Nawaz Ahmed as a general partner. Remarking on what the incoming general partner is expected to bring, Vignesh Kumar, the co-managing partner at GD1, said in a press release:

One of our goals at GD1 has always been to diversify into new focus areas and continuously expand our knowledge base by onboarding individuals with diverse and interesting experiences and so we’re thrilled to have Nawaz join the GD1 team to help lead our web3/crypto strategy.

Kumar added that Nawaz’s work grants GD1 a vital platform to test the fund’s “thesis around the concept of permissionless innovation that web3 is built on.”

According to the statement, the fund’s first close is set for June and there are expectations it will be oversubscribed with early commitment from international Limited Partners. The statement, meanwhile, clarified that the GD1 Crypto Fund 1 is separate from GD1 Fund 3.

Missed Opportunity

For his part, Ahmed spoke of how of local startups appeared to only seek funding from offshore sources. He said:

“In the past, the very best NZ companies in this space have easily been able to raise funds globally and haven’t needed to rely on local investment. This is a missed opportunity for NZ-based funds and one we’d like to be the first to explore.”

As Ahmed acknowledges, several funds specifically focused on the metaverse, Web3, and cryptocurrency have sprouted over the past few years. However, unlike GD1’s fund, some of the global venture capital groups like Griffin Gaming Partners, a VC firm specializing in gaming-related investments, have launched larger funds.

As recently reported by Bitcoin.com News, Griffin Gaming Partners has set aside $750 million to fund Web3 and blockchain projects. Earlier this year, Electric Capital is reported to have raised $1 billion to back crypto startups and to buy tokens, while Dragonfly Capital closed its fund for an oversubscribed $650 million.

Meanwhile, the New Zealand VC’s statement revealed that GD1 will be investing in pre-seed to Series A companies across decentralized finance, decentralized autonomous organizations, non-fungible tokens, Web3, and crypto infrastructure.

What are your thoughts on this story? Tell us what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.



Image Credits: Shutterstock, Pixabay, Wiki Commons

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