Venture capital continues to push the boundaries of blockchain innovation, and Lemniscap, a leading VC firm, recently announced their latest stride forward, by revealing a new $70 million fund specifically designed to invest in early-stage Web3 startups, aiming to fuel the next wave of blockchain innovation. The firm’s focus remains clear—backing projects that promise transformative blockchain-based solutions across sectors like zero-knowledge infrastructure, emerging Bitcoin ecosystems, security, decentralized physical infrastructure networks (DePIN), and consumer-facing applications.
A History of Early-Stage Success in Crypto
Lemniscap has long been synonymous with early-stage investments in the crypto and blockchain space. The firm’s journey began in 2017, a time that preceded one of the most challenging periods in crypto history – the infamous 2018 market crash. Undeterred, the VC firm remained steadfast in its strategy and backed several successful projects, some of which have since become central pillars of the Web3 ecosystem. Among these are notable protocols like Avalanche, Celestia, EigenLayer, Euler, and Axelar, illustrating the firm’s sharp instinct for identifying future giants in the blockchain world.
With ~ 100 investments to date, Lemniscap has solidified itself as one of the more influential players in the early-stage crypto investment scene. But more than just capital, the firm brings strategic guidance, helping startups navigate the complexities of the fast-evolving blockchain landscape.
Focus on Long-Term Innovation
Lemniscap’s investment philosophy is centered on long-term value creation rather than quick wins. This patient approach has been crucial in sustaining startups through both the volatile highs and inevitable lows of the market. By emphasizing blockchain innovation that offers real-world utility, Lemniscap looks beyond speculative trends and instead backs technologies and protocols with lasting impact.
Their new $70 million fund continues this tradition, targeting projects that provide infrastructure and solutions necessary for the future of the decentralized web. With Accolade Partners—a fund-of-funds also focused on blockchain ventures—joining as a key backer of the fund, Lemniscap is equipped with both the capital and strategic resources to support the most promising startups in the industry.
Lemniscap’s Portfolio Breakdown
Lemniscap has strategically built a diverse portfolio of 95 projects, showcasing their expertise in backing promising ventures across various sectors of the Web3 ecosystem:
- 9 – Zero-Knowledge (ZK) projects
- 15 – Consumer-based startups (e.g., StepN, HackMD)
- 19 – DeFi projects
- 39 – Infrastructure-focused (e.g., Celestia, Axelar, puffer)
- 1 – Centralized Exchange (CEX)
- 8 – Tooling companies
- 4 – Creator economy projects (e.g., Safary, Encode Club)
This breakdown highlights Lemniscap’s focus on infrastructure and DeFi, while still tapping into emerging areas like consumer applications and creator economies.
Conclusion
Lemniscap’s new $70 million fund marks a significant milestone not just for the firm but for the entire Web3 ecosystem. With a strong track record of backing early-stage blockchain startups, the firm’s latest investment vehicle is poised to make a substantial impact, particularly as the industry regains momentum towards the end of 2024.
As more capital flows into the Web3 space and the demand for decentralized solutions increases, startups focusing on foundational blockchain technologies will be crucial in shaping the future of the decentralized internet.
