Seven Seven Six said that they will use $177.6 million for its Kryptós fund which will invest in crypto tokens available at a discount after the recent market correction.

Reddit co-founder Alexis Ohanian’s VC firm Seven Seven Six is currently planning to raise $177.6 million for a new fund focused on making investments in crypto tokens.

The Information got access to fundraising material where it noted that the new fund, named Kryptós, will be the first focused exclusively on crypto. The fund seeks to take advantage of the recent market crash in crypto that has created new buying opportunities.

As per the fundraising materials, “now is potentially a unique opportunity to invest in strong founders at a discount”. Reddit co-founder’s VC firm is planning to launch its Kryptós fund later this year in October 2022. As per The Information, Kryptós will target crypto tokens that are available at a discount after the recent market correction. Katelin Holloway, the founding partner at Seven Seven Six said:

“This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale.”

In order to invest in crypto tokens, Seven Seven Six had already registered as an investment adviser with the US Securities and Exchange Commission (SEC). It received the registration this year in April 2022. In the past, Seven Seven Six had participated in investments such as BAYC development company Yuga Labs, Web3 wallet Rainbow, and NFT project Doodles.

Further Details of Kryptós Fund

As per the fundraising material available, the Kryptós fund will charge investors a management fee of 2.5%. Besides, it will also receive carried interest or a share of the fund’s profits of 25%. If the fund manages to return five times or more capital, the profit share could increase to 35%.

This is the first crypto-focused fund by Alexis Ohanian’s venture capital firm Seven Seven Six. Previously, the VC firm raised two funds worth $500 million to invest across industries including digital assets. Seven Seven Six manages more than $900 million in total assets.

Over the last year, a large number of high-profile VC firms have been raising funds to invest in crypto tokens. Earlier this year, VC giant Sequoia Capital had raised around $600 million for investing in crypto tokens. Bessemer Venture Partners had recently launched a $250 million crypto fund.

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