TenT Holdings, an investment firm with a total of $1.2 billion in managed assets, is reportedly launching a new fund, TenSquared Capital (10SQ) with a target of raising $200 million to invest in crypto startups. 10SQ will take a similar approach to other successful crypto-friendly VC firms, like a16z and Sequoia Capital, becoming registered as an investment advisor. Limited partners of the 10T Holdings have already made investments in the new fund and, according to sources, the fund is looking to invest in two digital asset startups.

This announced fund seems to indicate that despite the negative impact of frauds, collapses, and other situations on the crypto industry, some investors still view the crypto sector as a viable option for VC funding. And though crypto investment has taken an 80% hit compared to numbers from the same period last year, this need not surprise, as VC activity has decreased across the board. This is because high-interest rates, together with banking turbulence, has scared off multiple investors in the venture capital sphere. Besides, the AI industry has attracted a lot of attention in the past year and saw a record level of $18 billion in investments in the first quarter of 2023, possibly crowding out crypto startups.



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