Seven Seven Six, the venture capitalist spearheaded by Reddit co-founder Alexis Ohanian, is looking to launch a new $177.6 million fund to invest in cryptocurrencies. It represents the first Seven Seven Six’s fund focused solely on crypto and comes amid a critical period for digital assets.
776 Launches Crypto Fund to Take Advantage of Discounted Token Prices
Venture capital firm Seven Seven Six (776) is launching a crypto-focused fund, with $177.6 million in capital commitments, as per a report by The Information. The fund, named Kryptós, will invest primarily in crypto tokens that trade at more affordable prices as a result of the sharp crypto market drawdown this year.
“This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale.”
– Katelin Holloway, Founding Partner at Seven Seven Six
Seven Seven Six is founded by Alex Ohanian, co-founder of Reddit. The VC firm registered as an investment adviser in April to invest in tokens.
Kryptós’ fundraising materials showed that the fund will charge its investors a 2.5% management fee and receive 25% carried interest. That figure could increase to 35% if Kryptós brings fivefold returns or more, according to the materials.
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Reddit Co-Founder Continues to Dive Into Crypto
Kryptós represents Ohanian and 776’s crypto-oriented fund after the firm previously launched two $500 million funds to invest in different industries. The Reddit co-founder also founded the early-stage VC firm Initialized Capital.
Last month, Reddit announced its foray into the non-fungible token (NFT) space after launching an avatar marketplace that allows users to buy blockchain-based profile pictures for a fixed price. The social media company said users do not need a crypto wallet to buy these avatars. Instead, they can buy new profile pictures with a credit or debit card and store Reddit’s own wallet to store them.
Reddit, known as one of the main meeting points of retail investors behind the meme-stock craze last year, said it will launch roughly 90 designs, while the total amount of NFTs being available in the early-access stage amounts to “tens of thousands.”
Reddit also partnered with crypto derivatives exchange FTX earlier this month to integrate its Community Points across various global markets. The partnership allows users to use FTX Pay to pay for their gas fees and transfer their Community Points to Arbitrum-powered Ethereum wallets.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.