L1 Digital AG (L1D), a Zurich-headquartered investment advisory firm specializing in digital assets and boasting $400 million in assets under management, has successfully secured $152 million for its second venture capital fund. This new fund is set to channel 70% of its capital directly into promising crypto startups, while allocating the remaining 30% to early-stage investment firms focusing on cryptocurrency, media reports said.
Noteworthy names in the industry, including Multicoin Capital, DeFiance Capital, Castle Island Ventures, and 1kx, enjoy the backing of L1D. The company is registered with FINMA, Switzerland’s autonomous financial markets regulator, and administers an alternative investment fund in addition to its two venture capital funds. These funds, strategically supported by professional and institutional clients, encompass Swiss pension funds, family offices, wealth management entities, and banks.
Having been established in August 2018, L1D brings to the table a history of adeptly raising and deploying funds even in bear market conditions.
Ray Hindi, the Co-founder and CEO of L1D, explained the rationale behind this approach, stating, “We’re most active during bear markets. If you look at our fund allocation, this is when it makes a lot of sense to onboard funds for two reasons. Number one, the effect of advantage is really important and acute… The second benefit of investing in bear markets is to de-risk operations. In bear markets, competition is pretty low, typically.”
The L1D Blockchain Venture II SLP fund, the latest addition to their portfolio, has already committed around a third of its total capital. Notable investments made by this fund include contributions to the institutional credit ecosystem Centrifuge, blockchain-based REIT manager Groma, crypto custodian Safe, decentralized bridge aggregator Li.Fi, and treasury management startup Squads. Direct investments from the fund typically range from $1.5 million to $7 million per project.
