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In a strategic move within the blockchain venture capital landscape, Paper Ventures, led by Danish Chaudhry, Oliver Blakey, and Ivailo Jordanov, has introduced a $25 million fund dedicated to supporting early-stage projects in blockchain and web3 gaming.
The founders, with a history of web3 investments since 2010, have entered the space at a time when the initial excitement surrounding blockchain and web3 gaming startups has subsided. The decision reflects a measured approach to capitalize on the post-hype phase, indicating potential stability in the sector.
The $25 million fund is deliberately capped, underlining Paper Ventures' commitment to early-stage projects where they believe they can offer maximum value. Beyond injecting capital, the founders aim to actively nurture and support the identified projects.
Leveraging its extensive industry experience and networks, Paper Ventures pledges to provide portfolio projects with crucial resources and connections for success. The fund's capital was raised through the involvement of traditional hedge funds, family offices, exchanges, founders, and other high-net-worth individuals with substantial web3 experience.
Oliver Blakey, co-founder of Ascensive Assets and a former poker professional, stated: "Our mission at Paper Ventures is to be at the very forefront of innovation, fostering groundbreaking ideas that redefine the boundaries of technology and finance. We believe in the transformative power of blockchain and are committed to supporting those who are as passionate about its potential as we are."
With a history of navigating various market cycles since 2010, the founders boast early backing of projects such as Frax Finance, SEI, Polygon, Injective, Polkadot, Moonbeam, and Cosmos. Their portfolio also extends into the burgeoning GameFi sector, with investments in projects like Merit Circle/Beam, Illuvium, and YGG.
Danish Chaudhry, with a background in traditional finance, expressed excitement about investing in groundbreaking ideas and using his experience to elevate the minds behind them. Chaudhry, a former member of Blackrock's UK European equities team, played a key role in building risk models for the proprietary platform Aladdin.
The founders revealed their commitment to diverse investments. While confirming their involvement in the gaming sector, they emphasized that Paper Ventures is not limited to one industry. The trio expressed interest in preseed opportunities across various sectors, citing the lack of founder-first seed stage funds in the current landscape.
Addressing concerns about potential over-investment in the sector, the founders argued that most funds are now focused on realizing returns from previous investments, leaving a gap in funding for early-stage startups. They believe Paper Ventures can fill this void by prioritizing the needs of founders and actively contributing to building businesses from the outset.
In the dynamic landscape of web3 gaming, Paper Ventures' strategic move into the blockchain venture capital space holds particular significance. With investments already spanning the GameFi sector, including projects like Merit Circle/Beam, Illuvium, and YGG, the fund's founders demonstrate a keen awareness of the evolving intersection between blockchain technology and gaming. As the gaming industry increasingly adopts decentralized finance and blockchain solutions, Paper Ventures' commitment to supporting early-stage projects positions them as key players in shaping the future of web3 gaming.
