Blockchain investor Fortis Digital Ventures is closing a $100 million crypto fund as more traditional financial players enter the crypto world. They aimed to bridge the gap between the old and new finance worlds.

“By building an investment fund focused on blockchain opportunities, we get to spend our time doing due diligence on teams and tech in web3, which gives us insight into what is missing in the market,” Mike Boroughs, co-founder and managing partner of Fortis Digital Ventures, told TechCrunch.

Boroughs, who previously co-founded an RIA that had $250 million in assets under management, and his co-founder, Chris Capriccio, formerly VP of engineering at LegalZoom, will run the new fund with former hedge fund veterans and engineers.

The company shared that the fund aims to make blockchain investing easier through asset allocation, risk management and position sizing in crypto. And while it will target traditional investors, only those wanting to invest a minimum of $250,000 and have a net worth of $2.5 million or higher will be able to get a seat.

“We want to ensure people we work with have access to this space, because the vehicles to invest in it through the traditional routes, like brokerage accounts, are severely lacking,” Boroughs said. However, given the volatile and complex technical nature of crypto, most traditional investors don’t have “the stomach or skill set” to properly invest successfully or long term, he noted.

Their goal is to help people get access into Web 3 and crypto at the ground floor to participate in the upside of a generational paradigm shift in technology. 

While Fortis’ investment strategy is holding steadfast, the current market conditions may be bearish from the crypto chaos that caused the market to dip last week, Boroughs said.

“The overall marketplace is likely to see a retraction in the easy money that was flowing to fund even questionable ideas and projects,” he said. “While a short-term headwind, we view this as a long-term positive, as it means projects will need to stand on their individual merits and not just use the terms “crypto,” “blockchain” or “web3” in their marketing collateral.”

He said that the firm will focus on investing in web3 companies that are building better user experiences and solving real world issues for people or businesses. He then added that those with high utility, high scalability and low barriers to adoption will succeed but weak projects could fail.

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