Lightspeed Ventures, the backer of Snapchat needs no introduction in the venture capital scene. The VC firm is predominantly vested in technology investment. It boasts an impressive track record of 300 invested enterprises, most of which are technology companies. However, breaking from its norm of investing in technology, the firm is looking to venture into the cryptocurrency market. It is reported that the company is looking into a venture capital project that solely invests in crypto investments.
Lightspeed and its general partner Aaron Batalion are exploring three directions for a possible crypto venture. If established, the crypto investment firm of Lightspeed Ventures will be one of its kind high-tiered venture firm that may lead the VC world in a different direction.
Lightspeed Ventures Plans Entering the Crypto-World
Lightspeed is renowned for backing new and innovative technologies. This fact can be verified by their numerous investments in the technology sphere and in innovative products. The inquisitive company has already set their sights on the potential of the blockchain systems, it is noted that they have invested in a number fintech operations that employ blockchain. According to a Lightspeed spokesperson,
“We’ve been making many investments in the fintech space over the past several years, including Affirm, Blockchain, Basis and more that are unannounced. Blockchain-based technologies are a huge area of interest for us and we have partners focused on this. In terms of a dedicated crypto fund, we have nothing to announce at this time.”
As for its initiative in the crypto world, the venture's move of establishing a crypto-based investing firm, led by Aaron Batalion, is at the top of the list. Though many VC's are interested in this project the complete framework for the operation is yet to be established. It is reported that Lightspeed is considering three options and might move forward with one of it.
The Three Directions for Lightspeed Ventures
After carefully considering multiple options, Lightspeed Ventures is at a three-way junction for their new crypto investment project. It is expected that the project would be initiated with one of the three finalized choices.
Their first option is to do a carve-out. Lightspeed may cave-out existing funds and set it up as a separate fund for crypto projects and publicize it. This is the easiest option for Lightspeed, as they can pool resources from the existing funds and quickly establish the new venture.
The second option is to set up a new fund. Though it may require more efforts to go with this option, Lightspeed is in serious consideration on setting up new funds to concentrate solely on the cryptocurrency projects.
The last option is less likely to happen, compared to the other two. The third option is to do a spinout. It is reported that if the first two options are not feasible, Aaron Batalion will step down from Lightspeed as the general partner and will use his own funds to start the crypto funding project. Though it does not carry the Lightspeed brand, it is said that Lightspeed told Batalion that it will financially back any new entity, according to a person close to him.
This new initiative of Lightspeed will point a new direction for the VC in the future. This initiative will further accelerate and support the growth of the cryptos.