The world of NFTs is always exciting, as long as there is a constant stream of money flowing in. Despite a decrease in the rate of investment, investors are still injecting billions into the sector. Additionally, more cryptocurrency buyers are creating funds to support NFT platforms, projects, and the non-fungible tokens themselves.
Although there are now some specialized funds exclusively focused on NFTs, larger institutional firms still consider it a risky area. Nevertheless, this is not preventing these investors from becoming Limited Partners (LPs) in NFT funds. Recently, a new NFT fund led by Andrew Jiang and Todd Goldberg has gained support from several notable Silicon Valley crypto venture capitalists.
Curated, a fund worth $30 million, is dedicated to purchasing and retaining NFT artwork. It has received support from an impressive group of crypto investors, including significant participation from a16z’s investment team (Marc Andreessen, Chris Dixon, Andrew Chen, Arianna Simpson, and Jon Lai are among the supporters). Other investors and founders in the industry, such as Alexis Ohanian, Justin Kan, Avichal Garg from Electric Capital, and Curtis Spencer, have also backed the fund.
The fund intends to allocate approximately 50% of its resources into “blue-chip NFTs,” which comprise sought-after projects such as CryptoPunks, Art Blocks, and Bored Apes, as well as NFT works from popular artists. The remaining 50% of the fund will be invested in “high potential collections” by artists with smaller existing markets, as determined by Jiang and Goldberg.
Goldberg, in an interview with TechCrunch, explained that he believes NFT assets will be a significant development over the next ten years, growing orders of magnitude larger than they are today. This is because NFTs provide a digitally native approach to investing in culture on an internet scale. “We aspire to be a discerning collector who acquires the best assets while also being supportive of creators and builders,” he said.
According to Goldberg, the company may consider collaborating with some of the artists in its portfolio to conduct its own NFT drops.
Although the NFT market is still generating billions of dollars, the rate of investment appears to be tapering off in recent weeks. According to blockchain analysis tool DappRadar, in the past 30 days, the OpenSea platform recorded $2.3 billion in transaction volume, which represents a 40% drop compared to the previous 30-day period.
Goldberg notes that although the market has been volatile, they are now entering a bear market, which is favorable for the fund as they possess patient capital. He adds that they will wait for the most exceptional opportunities to enter positions and will hold onto these investments in the long run. While long-term, patient capital may not seem significant, Goldberg believes that it is a strategic advantage in a market where everyone is primarily focused on the short-term.
The fund’s primary manager, Jiang, has founded the hardware startup Soda Labs and the YC-backed nonprofit Bayes Impact. Meanwhile, Goldberg, who co-founded the ticketing startup Eventjoy, is already running a separate fund that invests in startup equity, which he manages with Superhuman founder Rahul Vohra. Several founders in that fund’s portfolio, such as Dapper Labs and the founders of NFT startup Manifold, are also supporters of Curated.
Who is Chris Dixon?
Chris Dixon is a venture capitalist and entrepreneur based in the United States. He is currently a general partner at Andreessen Horowitz (a16z), a Silicon Valley venture capital firm that invests in startups across various industries.
What is Chris Dixon known for?
Chris Dixon is known for his investments in numerous successful startups, including Coinbase, BuzzFeed, Oculus, and Github. He is also known for his work in the cryptocurrency and blockchain space, as well as his contributions to the development of the decentralized web.
What companies has Chris Dixon invested in?
In addition to the companies mentioned above, Chris Dixon has invested in several other notable startups, such as Airbnb, Warby Parker, Stripe, and Pinterest.
What is Chris Dixon’s background?
Chris Dixon graduated from Columbia University with a degree in computer science. Prior to his career in venture capital, he co-founded and served as CEO of SiteAdvisor, which was acquired by McAfee in 2006. He also founded Hunch, a personalized recommendation engine that was acquired by eBay in 2011.
Does Chris Dixon have any public speaking experience?
Yes, Chris Dixon is a frequent speaker at conferences and events related to technology, entrepreneurship, and venture capital. He has also given talks at universities such as Stanford, MIT, and Harvard.