Cryptocurrency trading platform FTX has high hopes for the future of Web3 development. While that concept remains subject to much debate, the exchange set up a $2 billion VC fund. The fund will invest in firms focused on blockchain and web3 development.
A Bold Move By FTX
Most people will have seen the FTX brand pop up across various sports and other broadcasts, platforms, and so forth. The exchange keeps making inroads to push its branding and establish a household-recognized reputation. Moreover, the global rise in interest in cryptocurrencies paints a bullish outlook for the industry and any company looking to make a name for itself.
Establishing a $2 billion venture capital fund to invest in Web3 may help push that narrative forward. The general public remains somewhat unconvinced by Web3 and what the technology may help unlock. Moreover, various tech influencers see no benefits in Web3 as of yet, even though it remains worthwhile to develop the infrastructure and ecosystem.
Through the VC fund, FTX aims to help startups explore social, fintech, software, gaming, and healthcare opportunities. Making strategic investments in such projects, preferably at an early stage, can benefit the VC fund and its return on investment. Finding the right startups to invest in will be tricky, as every company claims to be building for Web3 these days, regardless of that being true or necessary.
FTX has also hired Lightspeed Ventures Partners’ Amy Wu to oversee the investment fund. Moreover, Wu will play a key role in managing gaming, M&A, and commercial initiatives. In addition, the fund will make contributions to multi-stage companies and projects through flexible funding and strategic support.
Amy Wu comments on her new role:
“With FTX Ventures, we are looking to support entrepreneurs building generational businesses. We’re particularly excited about web3 gaming and its ability to bring mainstream audiences into the ecosystem.”