DeFiance Capital raised an "eight-figure sum" of investment

DeFiance Capital raised an "eight-figure sum" of investment
Photo by Martin Rincon / Unsplash

Venture capital firm DeFiance Capital has raised an "eight-figure sum" of investment. That's what The Block reports.

According to sources familiar with the matter, the company held the first closing of its $100 million "liquid token fund." This was facilitated by a "good mix of investors," represented by other crypto funds, family offices and private investors.

DeFiance Capital was founded in 2020 in Singapore by Arthur Cheng. The company previously positioned itself as a "sub-fund" of Three Arrow Capital (3AC), which is going through bankruptcy proceedings.

In July 2022, DeFiance distanced itself from 3AC and announced its operational independence.

Arthur Cheng's venture capital firm first reported raising $100 million for its "liquid token fund" last September. At that time, DeFiance managed to raise nearly half of the amount.

According to some reports, some of the company's liabilities were reduced after the collapse of FTX, but the fund still managed to close the first tranche and start investing.

"Several ventures have launched tokens that have fallen below their IDO/IEO valuations. Some digital assets are even trading below their last private round valuation. This situation is further exacerbated by the onset of a bear market that has led to indiscriminate selling of coins across the board," the DeFiance report said.

The company believes that several crypto startups managed to place assets with an extremely favorable risk/return ratio.

As a reminder, between February 25 and March 3, crypto funds recorded an outflow of $17 million versus $1.9 million a week earlier. CoinShares analysts attributed this situation to regulatory uncertainty.