Crypto Accelerator Alliance has received investment from Peter Thiel's venture capital firm Founders Fund, which manages over $12 billion in total assets.
Founders Fund has made a “strategic long-term investment” in Alliance, the crypto accelerator announced on Wednesday without disclosing the size of the investment.
In response to questions, Alliance co-founder Imran Khan told The Block that it was a “minority shareholder” but did not reveal the exact percentage. Khan said the deal took place last October and details of the partnership were finalized in January.
The alliance had already listed Founders Fund as an investor on its website about two months ago, but Khan added that the news was now being made public.
Alliance agreement with Founders Fund
As part of its investment, Founders Fund will provide support to the Alliance's portfolio companies.
Joey Krug, partner at Founders Fund, told The Block: “We are investing in and partnering with AllianceDAO because we believe there is a need for a cryptocurrency-focused accelerator.” Told. “Our partnership is focused on supporting the alliance rather than launching our own accelerator, which we believe is better in the long-term interests of our founders. “We look forward to serving as a resource for Alliance companies and investing in promising startups that emerge from the Alliance's program,” Krug added.
Krug joined Founders Fund last year after spending nearly six years as co-chief investment officer at crypto venture capital firm Pantera Capital.
Alliance Fund III
Founders Fund’s investment in Alliance comes as the crypto accelerator is raising its third round of funding. Earlier this month, The Block reported that Brevan Howard Digital and Galaxy Digital each invested $10 million in the first close of Alliance Fund III, with the fund aiming to raise another $80 million by July. It was reported that
Khan clarified that Founders Fund does not invest in Alliance funds, but does take stakes in accelerators.
In addition to Founders Fund, venture capital firm Initialized, which has invested in companies such as Coinbase and Talos and has more than $3 billion in assets under management, has also said it will own a minority stake in Initialized starting in 2022. Khan revealed.
Alliance was founded in 2020 and has accelerated over 200 startups and 12 cohorts. The accelerator says it has backed several high-profile startups with combined valuations in the billions of dollars. Its portfolio includes projects such as Arbitrum, Immutable X, Axie Infinity, and Tensor.
In addition to Founders Fund, Brevan Howard Digital, and Galaxy Digital, other investors in the alliance include billionaire Mark Cuban, Jump Capital, Solana Labs co-founder Anatoly Yakovenko, and cryptocurrencies. These include Qui Sheffield, Head of Visa.
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