Venture Capital Lightspeed Faction Starts $285M Fund for Blockchain Startups

The new fund will focus mainly on early-stage crypto projects, participating in seed-stage and Series A funding rounds.

AccessTimeIconNov 9, 2023 at 4:00 p.m. UTC
Updated Nov 9, 2023 at 4:48 p.m. UTC

Lightspeed Faction, a blockchain-focused venture capital (VC) firm, is starting a new $285 million fund that will primarily invest in early-stage projects.

The VC, whose team members previously worked at Amber Group, and Coinbase, will also provide "crypto-native" advice to the projects it will invest in.

"Faction offers founders access to a team of experienced blockchain investors and operators, servicing the industry at a time when many have fled," the firm said in a statement Thursday. "The team is primed to provide crypto-native advice, with team members hailing from."

The new fund comes as optimism is trickling into the crypto sector after a prolonged bear market, buoyed by the expectation of bitcoin spot ETF approval by the SEC. Recently, Blockchain Capital, a crypto-focused investment firm, raised $580 million for two new funds. Meanwhile, Nym Technologies attracted $300 million from VCs in a crypto fund that will provide capital to crypto builders, developers and communities with a focus on privacy,

Faction, a joint venture with a $25 billion asset-under-management VC firm Lightspeed Venture Partners, typically invests in seed-stage and Series A funding rounds. The firm has investments in Crossmint, Lens,, and Matter Labs, the development team behind the zkSync layer-2 network atop Ethereum.

"The blockchain ecosystem is full of promising projects looking to disrupt everything from financial systems to telecommunication and we look forward to collaborating with them to nurture the next phase of blockchain innovation,” said Banafsheh Fathieh, co-founder and general partner of Lightspeed Faction.

Edited by Bradley Keoun.


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.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets