Heartcore Capital, a venture capital firm based in Copenhagen, Denmark, has announced the initial closing of its dedicated Web3 fund, Heartcore Capital Web3 I. The fund, which is specifically designed for crypto-native protocols and their native tokens, has raised €15M ($16.9M). Heartcore Capital believes that the current shift towards protocols mirrors the revolutionary changes that have been seen in software over the past three decades. The firm expects protocols to disrupt various sectors of the economy, similar to the disruptive impact of earlier internet startups.
- Heartcore Capital, based in Copenhagen, launches a new Web3 fund which focuses on crypto-native protocols and their native tokens.
- The initial closing of the fund raised €15M.
- The firm believes the ongoing shift towards protocols mirrors the evolution in software seen over the past three decades.
- Heartcore Capital expects protocols will disrupt various sectors of the economy similarly to how early internet start-ups did.
Furthermore, Heartcore Capital sees Web3 protocols as emerging powerful business entities, which exhibit exemplary revenue generation and value accruement. The firm also highlights the characteristics of these entities, like high capital efficiency and virality, as distinguishing them from standard startups.
The launch of this fund comes at a significant time, as the crypto market is two years into a phase known as “crypto winter”. With the attention diverting towards AI, Web3 is viewed as a contrarian but promising investment opportunity. The firm also highlights how the exodus of uncommitted investors and founders in this period has reinstated reasonable valuations and managed expectations. Additionally, a new wave of founders are noted to be leveraging infrastructure that is ripe for broader adoption.
Importantly, Heartcore Capital’s venture into crypto investment is underpinned by the firm’s deep connections to the crypto landscape. The investment team, led by Yacine Ghalim, comprises members with a background in crypto-native protocols such as Ethereum, Cosmos, Polkadot, 0x, Stax, and Stargate. Plus, the team includes Angelo Panumaht Goepel and Yohan Pereira who are experienced crypto power-users and investors.
Having already supported founders in early private rounds, Heartcore Capital has backed visionary projects including Panoptic, Elusiv Association, LI.FI, Superform Labs, Rhinestone, and Metahood.
The fund marks a significant step in Heartcore Capital’s innovation within the realm of cryptocurrency investment.
