Breaking the Mold: M31’s New Fund
M31 Capital is making headlines with its latest move to establish the M31 Capital Web3 Opportunity Fund, which aims to invest a staggering $100 million in decentralized internet projects. Announced on October 4, this fund showcases a strategic shift towards Web3, a sector that’s not just a buzzword but a burgeoning frontier.
Understanding the Liquid Venture Fund
What’s the deal with a “liquid venture fund”? Well, just imagine having your cake and eating it too! This fund structure allows investors to get their money back after just a 12-month lock-up. Despite the current state of the crypto bear market, M31 Capital has already locked in $50 million in investor commitments and plans to raise the remaining $50 million soon. Talk about a confidence boost!
Investor Enthusiasm in a Bear Market
In a year that feels like it’s sent many investors hiding under their beds, the surge of funds dedicated to Web3 projects is remarkable. A report from Cointelegraph Research indicates that Web3 ventures accounted for about 42% of all individual venture deals in the blockchain space during the second quarter of 2022. Clearly, if you’re a believer in the decentralized internet, now is not the time to back down.
The Correlation Dilemma
Crypto markets have been on a wild ride, exhibiting a high correlation with traditional equities throughout 2022. As economists work furiously to rein in inflation, some investors are scratching their heads, pondering if crypto prices have strayed from worthy fundamentals. The looming question remains: will this correlation spark more short-term turmoil, or are we witnessing the market’s need for a rebirth?
Words of Wisdom from Nathan Montone
As the founder of M31 Capital and an early Bitcoin investor, Nathan Montone weighs in on the unique circumstances of the current crypto market. He pointed out that this cycle is unprecedented—prices are on a downward streak while simultaneously, fundamentals and revenue growth seem to be on an upward spiral to dizzying heights. If that’s the case, it might just be the perfect opportunity for the brave-hearted to dive in.
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