On May 20, 2021, multi-stage Venture Capital platform White Star Capital announced the closing of its $50 million Digital Asset Fund. This Fund is primarily specialized for making investments exclusively in crypto and blockchain-enabled businesses.
A Successful Venture
White Star Capital’s Digital Asset Fund has seen unexpected success in terms of financing, exceeding its previous fund target by $20 million. On top of this, the fund has received major institutional backing from firms like Bpifrance and Ubisoft. Yoann Caujolle, Managing Director of Bpifrance, speaks on the importance of White Star’s Digital Asset Fund:
“It’s critical that emerging crypto and blockchain-enabled start-ups receive investment from firms and professionals who have the experience and knowledge to help drive their business forward. We’re pleased to parter with the DAF team for bringing their support and vision into the French and European blockchain and digital asset ecosystem.”
The Fund’s oversubscription is reflective of White Star’s investment expertise. Run by New York-based general Partner Sep Alavi, alongside Principal Investors Thomas Klocanas and Sanjay Zimmermann, the team has worked to connect traditional ventures, capital markets, and the digital asset space. White Star currently manages over $700 million in assets and has built a globalized, professional team across North America, Europe, and Asia.
The DAF is their first specialized fund fully focused on tapping into the rapid growth of blockchain technology and digital assets.
We’re excited to announce the final close of our $50M Digital Asset Fund #DAF, investing in #crypto-networks and #blockchain-enabled businesses. Led by @SepAlavi, with @tklocanas and @sanjayzimmerman, we’re pleased to partner with @Bpifrance and @Ubisoft: https://t.co/HZpTMXmEsA
— White Star Capital (@WhiteStarCap) May 20, 2021
Investment Thesis
The DAF looks to deploy an initial check size varying between $500,000 and $3 million into 15-20 companies centered around North American and European Markets. Of utmost importance to these investments is a research-driven approach to maximize returns by capitalizing on early access in both equity and token offerings.
Some of the fund’s current investments include dfuse, an open-source platform search/processor, and Multis, a crypto wallet
Another investment called Safello –a European crypto brokerage– recently went public on the Nasdaq First North Stock Exchange on May 12th. White Star Capital is extremely bullish on the opportunities presented by the digital asset space. General Partner Sep Alavi elaborates:
“Over the past 20 years, we have digitized every form of information, from newspapers and books to music and movies… With blockchain technology and digital assets, we are now digitizing value and money as well as building an entirely mew financial infrastructure. We are hyper-focused on this space, and we expect to see further innovative use cases such as crypto credit, DeFi, NFTs, metaverses and more manifesting at an accelerated pace. We strongly believe blockchain and digital assets represent a colossal opportunity to grow the digital economy and are actively investing in crypto protocols, infrastructure, privacy, financial, gaming and social use cases.”
Ultimately, White Star Capital’s new DAF is indicative of both the growing emergence of Investment professionals into the digital asset space, alongside a degree of market confidence within the burgeoning blockchain industry.
About White Star Capital
White Star Capital is a global multi-stage technology investment platform that seeks to invest in disruptive, industry-defining businesses. White Star’s global presence allows for unique perspectives from an international team before coming to an investment decision in the global landscape. With a diverse portfolio spanning multiple countries and industries, White Star Capital aims to help businesses scale in an international marketplace.
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