After raising $250 million for its 2021 Core Funds, Union Square Ventures (USV), a VC firm, has announced that it would allocate around 30% (appr. $75 million) of the capital into crypto-related investments.
According to an official announcement today, the firm noted that the fund set aside for crypto investments would be used to purchase cryptocurrencies and make strategic investments in new blockchain projects.
USV noted that it would allocate significant amounts of the capital into crypto-related investments because of the industry’s transparent computing and financial systems, which has continued to grant new investors access.
Notably, the investment aligns with its Thesis 3.0, an initiative launched in 2018 that requires the firm to invest in businesses or assets that increases in value over time as more people use them.
“We believe the opportunity to decentralize systems is still in an early stage that has seen increased adoption, and with a lot of interesting new activity,” the firm added.
USV Previously Invested In Crypto
The New York-based VC firm disclosed that this is not the first time it would allocate some portion of its capital into crypto-related investments.
USV also invested part of its Opportunity Funds and Climate Funds in crypto-related projects, as per the announcement.
In April 2019, USV announced that it raised $450 million, divided into two separate funds, with $200 million allocated to its 2019 Core Fund, while $250 million was disbursed for the 2019 Opportunity Fund.
Rising Institutional Interest in Crypto
USV’s capital allocation to crypto shows that institutional interest in cryptocurrencies has continued to gain traction.
While several public companies are still contemplating whether they should invest in cryptocurrencies, more institutions are committing large amounts of funds into the industry.
Just recently, Marathon Patent Group announced that it had used part of its cash reserve to purchase Bitcoin (BTC). The firm purchased $150 million worth of BTC, joining the growing list of public companies that now hold bitcoin on their balance sheet.