What is Pantera Capital doing that is different from other crypto-based funds? Why are they seemingly succeeding in the midst of what is still a considerable bear market? Despite reports that Pantera has only raised $125 million since last August, they have reportedly been aggressively targeting a new group of investors.
To understand why this matters, look no further than what Morgan Creek Digital has been doing recently with their new fund. According to both of these firms, it appears that the answer to bear market woes is targeting a very specific kind of investor for serious fundraising. For now, it appears that this means pension and endowment funds, which, according to CoinDesk, Pantera believes will result in much larger investments.
With this however, comes one particular caveat. Judging by the same CoinDesk article mentioned above, securing investments from such sources means waiting longer than usual for the funds to come through. To combat this, Pantera is continuing to diversify their investments across different sorts of companies, including a major effort into startups that are considered to have their feet on the ground, due to persisting on the market past the early-growth stage of their operations.
Overarching all of this is Pantera’s reported grand vision of becoming a more active board member with their portfolio companies. With their investment last year into Bakkt, it remains to be seen whether after the service’s launch, Bakkt will prove to be one of those companies that experiences this new involvement.
Whatever the case, it is reasonable to expect that after this bear market is officially considered to be over, crypto fund strategies will change for the long-term in response to what they have learned. People quickly forget how new the crypto industry is. Market conditions are far from set.
By: BGN Editorial Staff