As March 2022 comes to a close, Cypher Capital has launched one of the biggest seed funds in the MENA region. The MENA region consists of countries in the Middle East and North Africa. With the $100M million fund, the venture capitalist firm targets projects such as DeFi, GameFi, and Metaverse.
The company concentrates on using a holistic approach to bring a perfect ecosystem for blockchain-related projects. According to Bijan Alizadeh (founder and GP at Cypher), the company was proud and honored to launch their first and largest crypto project, a digital asset, and a blockchain private seed fund from the UAE and the Middle East Region.
Alizadeh further stated that they aim to cooperate with and enhance the ecosystem by working hand in hand with top-notch quality, vision-led innovators, and other venture capitalist partners. They aim to bring about a holistic blockchain community to improve the ecosystem’s enhancements.
The proof of their collaboration is Cypher’s recent investment (Crypto Oasis Sentio) worth $1.5 million. Here is more about blockchain funds and how they will be used in the coming years.
Why You Should Invest in Blockchain Projects
Provide Transparency and Accuracy to Their Market Pricing
Because blockchain projects also need to raise capital for expanding, growing, and hiring their team, they need to provide accurate market pricing. They want investors to make investments with a fair price that enables them to make a profit by appreciating the value of their investment. This can be done with tools like Coinmarketcap, which provides real-time market data on coins that can be used by potential ICO investors. It helps them evaluate whether a project will give them returns on investment, so they do not lose big money when investing in an unproven or fraudulent project.
The Solution for Founding Team’s Problem
Recently, many blockchain startups have been struggling to find funds for expansion. They may even have to face failure and wasted funds from investors who have invested in their projects based on the initial idea or the concept. For example, if the project faced difficulty gaining customers, it would not attract future investors who purchase ICO tokens.
Instead of waiting for their turn to attract investors’ attention and support, blockchain funds provide the solution for this problem. Besides, when a company is new and needs more funding to continue its growth, blockchain funds can also act as a catalyst to get other companies’ attention and support by issuing ICO tokens on their platform.
A Kick-Start Fund That Enables Startups to Grow
If a startup has already received an investment from an angel investor so that it can expand and operate further, then it will be able to expand its scale now with the help of blockchain funds after they have been closed. Therefore, blockchain funds can act as a kick-start fund to get startups in the industry going and help them grow.
Innovative Ideas for Blockchain Funding
If blockchain platforms seek more innovative ideas to draw investors and businesses on their platforms and make their investments, they should consider blockchain funds. This is because investing in those startups is not easy, and it may be hard to get investors’ attention for new ideas. If a platform issues ICO tokens designed for investors who want innovative projects that guarantee high returns, this will encourage other potential participants and make ICO tokens more prominent.
Capital Infusion for Financing Projects throughout the Entire Business Cycle
When a startup needs more capital expansion during its growth cycle or when it faces difficulty before obtaining long-term funding from investors and banks, blockchain funds can act as a capital infusion tool through which it can achieve that. This is because they can raise money via incubation and crowdfunding platforms and through initial coin offerings and the acquisition of other companies’ blockchain projects.
It Gives Investors More Control Over Their Investment in Tokens
To ensure they get projects that are well-designed, compliant, and developed with a complete understanding of blockchain technology and its impact, investors should exercise more control over their investments. They can take control of their ICO tokens by right-clicking on the portfolios they want to manage, which will lead to allowing themselves to manage the investment allocation and trading in different tokens.
With this approach, investors can be more in charge of the performance of their investments and feel comfortable having their portfolios tracked by them. This will help them explore individual projects that may not have existed before because they cannot be found in any public repositories.