Venture Capital Bitkraft Raises $220.6M for Second 'Token' Fund: Filing

The firm didn’t comment on the new SEC filing, but did outline its crypto investment strategy.

AccessTimeIconApr 6, 2023 at 8:47 p.m. UTC
Updated May 9, 2023 at 4:12 a.m. UTC

Gaming-focused venture capital firm Bitkraft raised $220.6 million for its second "token fund," which had a total target of $240 million, according to a March 30 filing with the U.S. Securities and Exchange Commission (SEC).

The firm launched a similar fund in October 2021, with $75 million in committed capital that was seeking to invest in blockchain gaming and digital entertainment.

  • Earn Alliance CEO on Helping Gamers Discover Web3
    Earn Alliance CEO on Helping Gamers Discover Web3
  • Web3 Gaming Market Still Growing in 2023: Game7 Data
    Web3 Gaming Market Still Growing in 2023: Game7 Data
  • State of Web3 Gaming in 2023
    State of Web3 Gaming in 2023
  • Metaverse-Focused Gala Games to Airdrop Version 2 Tokens in May
    Metaverse-Focused Gala Games to Airdrop Version 2 Tokens in May
  • For the new fund, however, Bitkraft couldn’t comment on the nature of the investment mandate but partner Carlos Pereira outlined the firm’s general Web3 investment strategy during an interview with CoinDesk.

    Founded in 2016 by gaming and esports veteran Jens Hilgers, Bitkraft focuses on seed through Series B investments in game studios, gaming platforms and game-related technology across both Web2 and Web3.

    Bitkraft has grown to approximately $600 million in assets under management (with one-third devoted to Web3 opportunities) and has become an registered investment advisor. The firm’s funds have included an esports-focused and a general venture capital fund and the two "token" funds.

    “We’re gaming investors, first and foremost, with an operating and investing background that precedes the Web3 gaming bull run by a lot,” said Pereira. “We’re focused on underwriting great games with the tools that we have. Now in crypto, with the experience that we have as players, we want to see the economic rails evolve,” he added.

    Investment strategy

    Pereira said Bitkraft’s move into gaming was motivated by the team’s experience as gamers rather than a desire to get in on the GameFi boom that hit in 2021 as play-to-earn titles like Axie Infinity made numerous headlines – and dollars.

    Bitkraft brings a background in funding Web2 studios that build complex environments and are looking for similar Web3 projects. The firm favors developers that have a higher-than-average amount of experience, often gained through decades of experience at Web2 studios.

    Bitkraft’s recent investments have included Eve Online developer CCP Games and blockchain-enabled mobile game developer Jungle. The firm's investments happen through a combination of equity and token purchases.

    “If we own both the equity and the token, we can design a game that maximizes value creation through primary sales and maximizes value creation through secondary sales,” explained Pereira, noting the importance of “figuring out a business model that works and allocating that value between equity and tokens.”

    The bull market of 2021 attracted new game developers to the Web3 space, who received venture capital backing through the first half of 2022. Despite the bear market that followed, that narrative hasn't finished playing out yet. Those developers are still in the early stages of their two- to four-year development cycles, Pereira noted.

    CORRECTION (UTC 21:27): Corrects assets under management figure and edits headline for clarity.


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

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.