Gate Ventures on Track to Close $200M Crypto Fund by Q3

The VC arm of Gate.io will invest in layer 1 and layer 2 protocols that can help build an open internet.

Apr 29, 2022 at 11:38 a.m. UTC

Updated Apr 29, 2022 at 2:40 p.m. UTC

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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

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The venture capital arm of crypto exchange Gate.io is on track to raise $200 million for its second fund by Q3 2022.

Gate Ventures wants the fund to aid alternative layer 1 and layer 2 protocols, the company’s managing partner, Kevin Yang, told CoinDesk in an interview on Friday. Layer 1 protocols are blockchains like Ethereum, whereas layer 2 networks are third-party integrations like Polkadot.
“We have this vision that it will be a multi-chain and multi-layer future, with an open internet which also respects privacy,” Yang said. Gate Ventures is taking contributions from around 20 institutions.
The fund wants to invest in cross-chain solutions that allow blockchains to interact with each other. It will also help fund specific applications like gaming protocols which are in high demand thanks to the help of the metaverse’s growth, as well as decentralized finance ones.
The company also launched a $100 million fund in 2021 to invest in early stage projects in the crypto space. “We believe that the crypto future is not something we can wait for but rather we need to build this vision,” Yang said.

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