Kraken Ventures Wants to Raise $100M

Kraken Ventures, the venture capital arm of crypto exchange operator Kraken, is in the process of raising its second fund in a challenging environment. According to three sources familiar with the situation, the company is actively engaging potential investors.

The aim is to secure $100 million for this second fund, as per one of the sources. This figure would surpass the $65 million initially amassed for Kraken Ventures’ first fund, which concluded in 2021.

Brandon Gath, Managing Partner of Kraken Ventures, confirmed the effort to establish another fund. He emphasized that the unit will strengthen its commitment to its existing strategies and continue supporting founders throughout their journey, from initial funding to IPO.

Gath highlighted the substantial experience of the Kraken Ventures team in early-stage investing, having undertaken numerous such investments across blockchain, fintech, and deep tech. He also pointed out that smaller funds are more advantageous for entrepreneurs and investors, as they offer a more hands-on partnership. He mentioned that data consistently demonstrates that small funds outperform larger ones.

Though operating independently with external funding, Kraken Ventures maintains a robust connection with Kraken, Gath further clarified.