Inception Capital closes flagship $30 million fund of funds focused on emerging crypto managers

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Early stage-focused Web3 company Inception Capital (formerly known as OP Crypto) has closed its first fund at $30 million, company founder and general partner David Gan tells TechCrunch exclusively shared with.

The fund, OP Fund of Funds I LP, was targeted at family offices and high-net-worth individuals who wanted “diversified” exposure to early-stage crypto venture deals. It is backed by investors including Mirana, FJ Labs, and Serafund. “Rather than family offices trying to make the best investments themselves, this vehicle provides a good hedge and risk-adjusted downside vehicle for acquiring crypto exposure,” Gunn said.

The vehicle will invest in about five new investment managers or funds each year, rather than backing specific projects, protocols or startups, Gan added. “We place our funds in other institutional managers and we have a fairly diversified portfolio in which these funds are invested.”

This flagship vehicle will focus on investing in “up-and-coming” people looking for “hungry” early-stage startups. “This is a good calendar year to double down on space, invest early and support entrepreneurs,” Gunn said.

The fund has deployed about 30% to date and will continue to focus on emerging managers in the crypto venture space.

The five management companies we have invested in are Syncracy Capital, Escape Velocity, Alliance, OrangeDAO, and Everyrealm. We are also co-investors with Bain Capital Ventures, ParaFi Capital, Multicoin Capital, and Marc Andressen and Chris Dixon of a16z. (Note: Inception Capital holds the general partner shares of his first two managers.)

While the fund of funds (FoF) space is generally a huge market with billions of dollars of capital, it is “very small” in the crypto sector, Gan said. “You can count the number of crypto funds of funds on one hand.”

However, Gan believes there is a huge opportunity for managers who have grown over the past few years to take on sovereign wealth, endowments, pension funds, and institutional funds, thereby shifting the crypto venture space from “traditional markets.” We believe that we can advance our efforts to the point where we can rival the current situation.” ”