As traditional financial players continue to enter the crypto world, blockchain investor Fortis Digital Ventures is closing a $100 million crypto fund aimed at bridging the gap between old and new finance worlds.
A Bridge Between Old and New Finance Worlds
By building an investment fund focused on blockchain opportunities, we get to spend our time doing due diligence on teams and tech in web3, which gives us insight into what is missing in the market,’ said Mike Boroughs, co-founder and managing partner of Fortis Digital Ventures, in an interview with TechCrunch.
The new fund will be run by former hedge fund veterans and engineers, including Boroughs, who previously co-founded an RIA that had $250 million in assets under management, and his co-founder, Chris Capriccio, formerly VP of engineering at LegalZoom.
Aiming to Make Blockchain Investing Easier
The fund aims to make blockchain investing easier through asset allocation, risk management, and position sizing in crypto. While it will target traditional investors, only affluent clients will get a seat at the table – those wanting in must invest a minimum of $250,000 and have a net worth of $2.5 million or higher.
A Growing Need for Web3 Expertise
"We want to ensure people we work with have access to this space, because the vehicles to invest in it through the traditional routes, like brokerage accounts, are severely lacking," Boroughs said.
However, given the volatile and complex technical nature of crypto, most traditional investors don’t have ‘the stomach or skill set’ to properly invest successfully or long term, he noted.
A Long-Term Positive
While current market conditions may be bearish from the crypto chaos that caused the market to dip last week, Fortis’ investment strategy is holding steadfast, Boroughs said.
"The overall marketplace is likely to see a retraction in the easy money that was flowing to fund even questionable ideas and projects," he said. "While a short-term headwind, we view this as a long-term positive, as it means projects will need to stand on their individual merits and not just use the terms ‘crypto,’ ‘blockchain’ or ‘web3’ in their marketing collateral."
Focusing on Web3 Companies with High Utility
The firm will focus on investing in web3 companies that are building better user experiences and solving real-world issues for people or businesses, he said.
"We view this as a huge opportunity for investors willing to stay the course and dig through the rubble to find the gems," Boroughs said. "There is a massive need in web3 for an upgrade in user experience, and we believe the best opportunities will be found at the intersection of great tech and amazing user experience in order to get wide mass adoption."
The Intersection of Tech and User Experience
"There is no doubt that web3 has immense potential," Boroughs said. "However, most projects lack a clear understanding of what makes for good user experience. We believe that by focusing on this aspect, we can identify the best opportunities in the space."
A Call to Action
"We want investors who are willing to take a long-term view and understand the potential of web3," Boroughs said. "We are not interested in chasing short-term gains or investing in projects with little substance. We want to work with partners who share our vision for the future of finance."
Conclusion
In conclusion, Fortis Digital Ventures’ new crypto fund is a significant development in the world of blockchain investment. With its focus on web3 companies with high utility and user experience, it aims to bridge the gap between old and new finance worlds.
By targeting traditional investors with a minimum investment requirement of $250,000 and a net worth of $2.5 million or higher, the fund is designed to make blockchain investing more accessible to those who can afford it.
However, given the volatile nature of crypto markets, only those with the stomach and skill set for long-term investing will be able to benefit from this opportunity.
About Fortis Digital Ventures
Fortis Digital Ventures is a blockchain investor focused on building an investment fund that aims to bridge the gap between old and new finance worlds. The firm is led by former hedge fund veterans and engineers, including Mike Boroughs, co-founder and managing partner, and Chris Capriccio, formerly VP of engineering at LegalZoom.
About Web3
Web3 refers to a decentralized internet where data is stored on blockchain technology rather than traditional databases. It aims to create a more secure, transparent, and user-friendly online experience for individuals and businesses.
