DeFiance Capital Seeks New Fund For Liquid Token Investments

Crypto venture capital firm DeFiance Capital has commenced a fundraiser to secure $100 million which it plans to invest in liquid tokens. Crypto and Web3.0 investor Arthur Cheong is the founder of DeFiance Capital which recently suffered a blow from bankrupt Three Arrows Capital (3AC).

The new fund is dubbed “Liquid Venture Fund,” and will remain under the DeFiance name. The fund will focus on liquid crypto investments. So far, the investor is about to hit half of the intended target for the fund. The VC firm is pushing its efforts toward institutional clients like funds of funds and family offices. 

At present, several family offices and one crypto fund of funds have contributed to the fundraiser. While the $100 million fund is approaching completion, DeFiance Capital might start investing the already received funds. DeFiance Capital has successfully joined the train of venture capital firms that are eyeing the liquid token ecosystem. 

At the beginning of the year, American venture capital firm Sequoia Capital floated a fund that was around $500 million to $600 million. The firm had announced that it was utilizing the fund to deepen its crypto commitment and engagement in the digital assets ecosystem. 

Shaun Maguire, partner at Sequoia Capital affirmed that the fund would be primarily invested in liquid tokens which were already listed on certain crypto exchanges and those which were yet to be listed.

Does DeFiance Capital Have Ties With 3AC?

DeFiance Capital has been around for about two years now. The focus of the VC has majorly been Decentralized Finance (DeFi) strategies and venture-capital investments in Web3.0 companies.

Initially, when its operations began in 2020, the firm described itself as a “sub-fund and share class of Three Arrows Capital.” After the fall of 3AC in July, DeFiance Capital claimed to be independent of the now bankrupt firm, 3AC. It clearly stated that it is a separate entity from 3AC. 

The successful completion of the fundraiser will serve as a major comeback for the firm after the hit suffered by 3AC. The company agreed that its exposure to 3AC materially affected its operations.