Mantle Core Proposes $200 Million Fund to Ignite Web3 Startups

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The Proposal Unveiled

On February 26, the Mantle Core team dropped a bombshell on BitDAO’s governance forum: a proposal for a hefty $200 million fund aimed squarely at early-stage Web3 startups. It’s like the tech equivalent of finding a treasure chest while digging for potatoes in your backyard—unexpected, but certainly welcomed!

Funding Breakdown

This ambitious plan is set to deploy capital within the Mantle ecosystem over three years. Here’s the catch—BitDAO’s treasury is ready to chip in $100 million (in good ol’ USD Coin), and they’re expecting another $100 million to come from external “strategic venture partners.” It’s like a funding potluck, but with way more zeros involved.

Who’s Interested?

A handful of heavy-hitting funds expressed interest in participating, including:

  • Dragonfly Capital
  • Pantera Capital
  • Folius Ventures
  • Play Ventures Future Fund
  • Spartan
  • Lemniscap
  • Selini Capital
  • Cadenza Ventures
  • QCP Capital

With names like these, it’s like the Avengers of venture capital are gearing up to save the day (or at least their portfolios).

Investment Strategy

If the proposal receives the green light, the Mantle EcoFund will engage in projects with a 1:1 co-investment ratio, targeting Web3 startups in their pre-seed, seed, and Series A rounds. Think of it like a buddy system for startups—two heads (and wallets) are better than one!

Operational Details

The fund is designed for a three-year active investment period, with an option for an additional two years—because good things take time, right? The chosen operator is set to be Mirana Ventures, alongside an investment committee made up of representatives from Mirana, Mantle, BitDAO, and Bybit. It’s a who’s who of crypto-financial wizards!

Financial Expectations

According to the spokesperson from Mantle, the fund hopes to invest in over 100 projects in total, targeting a multiple-on-invested-capital (MOIC) of 1.5x. So yes, they’re aiming for that golden goose, not just a lizard in the backyard.

Management Fees and Industry Impact

Management fees are set at an industry-standard 2%. This is to ensure the EcoFund team can investigate, source, and support these promising startups, making sure everything runs smoother than a greased pig at a county fair.

This initiative isn’t alone. The crypto landscape saw Ethereum’s Polygon launch a similar $100 million fund last year aimed at improving DeFi access. With initiatives like these cropping up, one wonders if Silicon Valley is pondering a switch to crypto-villages!

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