London-based venture capital firm Blossom Capital, founded in 2017 as a generalist investor, announced its plans to plow considerably more money into the cryptocurrency market. Blossom has this morning announced a new $432 million fund, its third to date. The cash will be directed to European startups seeking Series A capital across various sectors, including consumer, cybersecurity, developer tools, enterprise software-as-a-service, fintech, and marketplaces.
A full third of the capital will be invested in crypto-powered firms.
According to the company’s announcement, a full third of the capital will be invested in crypto-powered firms. The announcement noted, “We do hold tokens. We will have exposure to the core protocols,” says Ophelia Brown, managing partner of Blossom Capital. “We are going to do a lot more of what we have already done,” Brown added. The firm does not appear to have much of a track record backing crypto businesses — save for its investment in MoonPay, which it backed in November last year when the crypto payments firm raised $555 million at a $3.4 billion valuation.
Blossom’s $185 million-sized second fund has quietly been investing in NFTs and tokens.
Brown revealed that Blossom’s $185 million-sized second fund has quietly been investing in tokens and even NFTs, without showcasing those bets in the way a standard equity investment would be. She added that the company has invested a lot of time and resources in developing the infrastructure needed to invest in web3 organizations. “We have some NFTs — we won’t disclose what, but we have NFTs,” she said. “We believe in the upside of some of these communities very much.” Blossom’s efforts in the sector will be steered by a new crypto-focused partner, a role the company is now actively trying to fill.