1kx, a leading venture capital firm focusing on crypto-based consumer applications, has successfully raised $75 million in its latest funding round.
1kx’s latest fund has attracted investments from notable venture capitalists, including Marc Andreessen, Galaxy Digital, and Accolade Partners. The fund also counts Chris Dixon, a partner at Andreessen Horowitz, as one of its limited partners. Accolade Partners serves as the anchor investor in the new fund.
Targeting crypto-based consumer applications
Founded in 2018 by Lasse Clausen and Christopher Heymann, 1kx has set its sights on investing in innovative projects within the crypto space, particularly those focusing on consumer applications. The new fund has already deployed capital into approximately five ventures, although Clausen has not disclosed specific companies.
The announcement of 1kx’s latest fund comes amid a surge in institutional interest in the cryptocurrency sector. With the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, institutional investors are increasingly recognizing the potential of digital assets as a viable investment avenue.
Venture Capital funding on the upswing
According to a report from PitchBook, venture capital funding in crypto startups experienced a notable uptick in the fourth quarter of 2023, reaching $1.9 billion. This represents a 2.5% increase from the previous quarter and marks the first rise in VC investments since March 2022.
February also saw a resurgence in VC investments, signaling renewed institutional confidence in blockchain. Leading the charge, Andreessen Horowitz (a16z) spearheaded a $100-million funding round for EigenLayer, Ethereum’s largest restaking protocol by total value locked.
In addition to EigenLayer’s funding round, several other crypto startups secured significant investments in February. Avail, a Web3 data availability and consensus layer, closed a $27 million seed funding round led by Founder Fund and Dragonfly. The funding will support the development of Avail’s products and accelerate Web3 unification efforts.
Beyond venture capital investments, blockchain game publisher Immutable recently announced the launch of a $100 million fund dedicated to investing in blockchain games. Partnering with venture capital firm King River Capital and Polygon Labs, Immutable’s “Inevitable Games Fund” (IGF) raised $30 million during its initial close.
The IGF has already invested in seven blockchain game titles, all native to ImmutableX or Polygon. Notable titles include Pixelmon, reminiscent of Pokémon, fantasy role-player Guild of Guardians, and shooter games Metalcore and My Pet Hooligan.
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