We are excited to officially announce the launch of Lightspeed Faction Fund I (“Faction”), a $285 million early-stage venture fund dedicated exclusively to blockchain technology.
At this point in the cycle, many investors have long left for ‘greener pastures’. At Faction, crypto winters are our favorite time to invest. While not for the faint of heart, it’s during these times that conviction is tested, trauma bonds are forged and the next wave of generation-defining companies are born. Collectively, we have navigated these cycles several times before, not with flippant appetite, but with compounding certainty and conviction. At Faction, no entrepreneur will ever have to answer: why crypto? We are fully red-pilled.
At the risk of sounding nostalgic, it’s hard not to draw parallels to 2019: industry sentiment abruptly shifted against crypto as the overly exuberant 2017 bull run ground to a halt; developer and user activity slowed; the VC funding market dried up and crypto became a dirty word. Yet despite the negative sentiment, last cycle’s crypto winter seeded projects that now serve as the foundational pillars of the crypto industry. Founders, operators and investors who remained steadfast in their conviction were extremely well positioned as the ice started to thaw. We believe this time will be no different. With blockchain technology clawing inch by inch forward, this is as exciting a time as ever to be here.
Needless to say, we think crypto will be huge, as in, seismically big in the next few decades and as a result, our investment approach is flexible and long-term oriented. We invest in the best entrepreneurs at Seed and Series A, across both equity and tokens. We are vertical agnostic and invest across the stack (infra to apps) and sectors (a to z - artist community platforms to ZKPs). We look to partner with founders who are jamming on something fundamentally useful and passionately propelling the industry forward. Our north star? Great entrepreneurs who are creating real utility and pushing the frontier.
As a joint venture with Lightspeed Venture Partners, we offer a unique blend of two worlds: crypto-native expertise, coupled with deep Silicon Valley roots and business scaling resources. We take a hands-on approach in supporting our investments – no task is off limits; we aim to serve as a sounding board on everything from tokenomics to tech, hiring, business development and beyond. We are deeply committed to ensuring the long-term success of our portfolio companies and want to serve as a dependable partner that will always be there, no matter the price of BTC.
We’ve built our team to 7 strong and are proud to have already backed more than 15 companies out of this fund. If you’re raising capital to build something rad in crypto, stop by, reach out, say hello! For those looking to take the plunge head first into operating or continue on their crypto warrior journey, our portfolio is also hiring - please see here for a full list of roles, or reach out directly to us.
The Faction Team
This communication is for informational purposes only. Nothing contained in this communication is, or should be construed as, a recommendation, promise or representation by Lightspeed Faction. This communication does not purport to be all-inclusive or to contain all of the information you may desire. This communication contains forward-looking statements and forward-looking statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. This communication is not an offer to sell or a solicitation of an offer to buy any securities.
About Lightspeed Faction's Relationship with Lightspeed
Faction Ventures, LLC (“Faction”) and Lightspeed Management Company, L.L.C. (“Lightspeed”) are separate businesses that operate independently of each other. Faction is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended. Faction advises its own fund(s) and does not advise any Lightspeed clients, and Lightspeed does not advise Faction or any of its clients.