Decentral Park Capital Launches $75M DeFi Fund

The Web 3 fund will invest in projects, including liquid tokens, decentralized exchanges and lending protocols.

AccessTimeIconJan 11, 2022 at 2:00 p.m. UTC
Updated Jan 11, 2022 at 4:40 p.m. UTC

Brandy covers crypto-related venture capital deals for CoinDesk.

Decentral Park Capital, an early-stage investment firm with $140 million in assets under management, now has a $75 million fund to invest in decentralized finance (DeFi) initiatives.

The firm has $74 million in the bank with about $1 million left to raise for the oversubscribed fund, Decentral Park Capital founder John Quinn told CoinDesk in an interview. Returning investors from the previous $17 million Fund I contributed about two-thirds of the new round. Quinn said the returning investors were mostly family offices (privately held companies that handle investment management and wealth management for wealthy families) while the new investors were mostly institutional.

Quinn said Fund II has already deployed about $45 million of its total and that its investments are “multi-chain focused.” Decentral Park Capital was an early investor in crypto infrastructure company Pocket Network and was involved with the company for over two years. Last week, Pocket announced a $10 million funding round for its native POKT token.

Decentral Park’s areas of interest include decentralized exchanges, lending protocols, derivatives, structured products, oracles, staking and middleware infrastructure.

DeFi fund

Founded in 2017, Decentral Park Capital had a broader blockchain focus for its Fund I, which was deployed across 20 projects, including DeFi lender Aave and asset insurance protocol Nexus Mutual. Based on the success of those early bets, investors asked Decentral for a second fund with a focus on DeFi, Quinn said.

“I think the major distinguishing factor [of the firm] is that we’re more and more founder-focused,” he added.

Quinn called himself a “recovering investment banker” with prior stints at Credit Suisse and Deutsche Bank, though he also founded decentralized cloud storage company Tardigrade.io. The Decentral Park Capital team is full of entrepreneurs that have built businesses and learned from their mistakes, which provides “scar tissue” that allows the team to relate to founders, said Quinn.

“You know that movie where you don’t want to go into the shed because bad things happen? I can say, ‘I’ve been in that shed. I know what happens in that setting,’” said Quinn.

Crypto-related investment funds hit new highs last year as cryptocurrency prices rallied, but Decentral Park Capital’s latest fund announcement comes during a pullback in prices. In November, Paradigm announced a $2.5 billion fund, which topped a $2.2 billion fund from Andreessen Horowitz to become the largest in crypto history.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Brandy covers crypto-related venture capital deals for CoinDesk.

CoinDesk - Unknown

Brandy covers crypto-related venture capital deals for CoinDesk.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
2
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
3
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
4
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown