TLDR:
- CMT Digital is raising $150 million for its fourth fund, led by ex-Pantera Capital exec Gerald Brant.
- The firm is focusing on Web3 investments, decentralized physical infrastructure, application-specific hardware, and stablecoins.
CMT Digital, a venture capital firm specializing in crypto and blockchain investments, is in the process of raising $150 million for its fourth fund. This fund would be the largest for the firm, which has already invested in over 150 companies in the crypto space since 2018. The firm’s strategy for this fund includes a focus on Web3 investments, decentralized physical infrastructure, and stablecoins. Investment partner Sam Hallene highlighted the potential of investing in companies with long-term visions that may take several years to materialize. The firm is particularly interested in decentralized physical infrastructure such as application-specific hardware, citing examples like Helium, a decentralized wireless network on the Solana blockchain. They are also exploring opportunities in stablecoins, including yield-bearing tokens like Ethena’s USDe, which currently offers impressive annual returns.
Gerald Brant, the head of capital formation at CMT Digital, is leading the fundraising efforts for the fourth fund. Brant, who previously worked at Pantera Capital and BlockTower Capital, aims to leverage the firm’s global investor base to capitalize on the evolving crypto landscape. The resurgence of interest in crypto VC is evident in the rising investments in the first quarter of 2024, according to data from PitchBook. While these numbers are lower compared to the peak in early 2022, the industry is still experiencing growth and interest from investors.
