Venture capital firm 1confirmation has just launched a $100 million funding focused on supporting new NFT projects.
Nick Tomaino, founder and general partner of venture capital firm 1confirmation, announced through a blog post that it is launching $100 million in new funds dedicated to investing in new NFT projects. He also took to Twitter to broach the announcement to the public.
According to Tomaino, they are doing this because they “think that NFTs are going to flip cryptocurrencies in the next decade [because] people care about culture (games, brands, art, music, sports) than finance.”
More Information about the Funding
The fund’s timing may seem off to some, considering the current slump in the cryptocurrency and NFT markets. However, Tomaino believes differently. He said that “NFTs look useless to outsiders on the surface, but the truth is they offer a new business model for content creators and empower consumers to become owners.”
Tomaino said that the most noteworthy “creators of games, brands, art, music are now looking to utilize NFTs” and that the new fund will support these creators early in their journey.
The NFT fund will have a 10-year life cycle and will focus on making long-term investments with more than 20 times venture upside in the new NFTs asset class.
Although the primary thrust of the funding is to support new NFT projects, 1confirmation is open to investing in blue-chip collections like CryptoPunks and Nouns. They also want to invest in NFT projects spanning music, art, gaming, and photography.
“While there is a short-term trading culture led by influencers in NFTs today, that’s not our game. We’ve learned from our venture funds that the biggest impact comes from making long-term bets on authentic teams doing new things that are pushing the space forward,” wrote Tomaino in a blog post.
Focus on NFTs
Tomaino said in his tweet that 1confirmation had supported NFT creators since they invested in OpenSea in 2018. Among the creators they have supported are Beeple, Murat Pak, Hackatao, Video Drome, and others. They have also invested in various vertical marketplaces for NFTs, such as SuperRare (high-end art), Catalog (music), Aspect (gaming), Sloika (photography), and Metahood (digital land).
They have also invested in Coinbase, dYdX, Nexus Mutual, and more. Nevertheless, this is 1confirmation’s first fund exclusively dedicated to NFTs. And from a “measly” $5 million when 1confirmation was founded in 2017, it now has more than $1 billion in assets under management.
According to Tomaino, “We’ve invested in NFTs out of our venture funds (including the SuperRare Genesis mint and Nouns DAO), but decided it was time to launch a fund dedicated to the [NFT] asset class.” He added that moving forward, all new NFT investments will be taken out of the $100 million NFT fund. They have also added someone to the team whose sole focus will be NFTs.
Lately, there has been a lot of doubt, fear, and uncertainty hounding the NFT space. Still, it’s incredible to see the continuous launching of funds supporting various NFT projects. Such indicates that venture capitalists remain optimistic and still see the promise in NFTs as an asset class.
Aside from this $100 million NFT funding from 1confirmation, recently launched funds include Solana Ventures’ $100 million, Ryan Carson’s $40 million, and Immutable X’s $500 million, among others.
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