Crypto VC firm invests in Web3 startups
According to Wendy Xiao Schadeck, a partner at Northzone, Web3 and web2 will most certainly begin to merge over the lifespan of this fund cycle, she stated in an interview with The Block.
Crypto VC infrastructure
According to Xiao Schadeck, the venture capital company has the infrastructure to help entrepreneurs through equity investments. As well as token sales and has already participated in token staking.
Furthermore, she hinted that, given the appropriate conditions, it might prepare the corporation to invest in a decentralised autonomous organisations (DAO).
Northzone, does not currently have exposure to NFTs, which Schadeck believes may change soon. Schadeck stated that the corporation is examining new investment modalities that align with its goals. Shadeck also stated that, despite some of the challenges DeFi has faced, she is not discouraged, citing the de-pegging of Terra's UST in May, which hurt portfolio firm Gro, causing it to reconsider its approach to providing yield for customers.
Northzone, on the other hand, will keep a watch on the web3 infrastructure market and DeFi protocols such as Gro, according to Xiao Shadeck.
Northzone was created in 1996 as a generalist investor and has funded a wide range of technology startups, from open banking specialist TrueLayer and buy now pay later juggernaut Klarna to music streaming provider Spotify, who is said to be considering web3.
Crypto VC fund possibility
Its portfolio firms are DeFi protocol Gro, web3 privacy company Sunscreen, and a startup crypto infrastructure, Magic Labs. Shadeck also told reporters that it is unknown whether Northzone would establish a cryptocurrency fund, as other European venture capital companies such as Aglaé Ventures and Cherry Ventures have done. She claimed that such a strategy would allow the company to engage in trading liquid tokens.
Venture Capital investing is speculative as an asset class and a crypto VC firm focused on innovation may be even higher risk. However, this of course comes with a higher reward.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.