White Star Capital Closes $50 Million Digital Asset Fund

Home » FinTech » Cryptocurrencies » White Star Capital Closes $50 Million Digital Asset Fund

White Star Capital Closes $50 Million Digital Asset Fund

Despite a rough week in the world of crypto, venture capitalists continue to see potential in the space. Case in point: White Star Capital has announced that it’s raised $50 million to create a Digital Asset Fund (DAF), which will invest in various blockchain-enabled businesses and crypto networks. Previously, the fund’s target was $30 million, but that figure grew as more backers jumped in. Among those backers were Bpifrance and Ubisoft. Running the fund are New York-based General Partner Sep Alavi, Principal investor Thomas Klocana, Toronto-based Sanjay Zimmermann.

White Star’s Digital Asset Fund will invest between $500,000 and $3 million in approximately 15 to 20 startups located in North America or Europe. In fact, six investments have already been made. Companies featured in this first batch include Rally, dfuse, Multis, Safello, Paraswap, and Ledn. In the case of Ledn, White Star led the Canadian digital asset savings and credit platform’s $2.7 million round back in February.

Speaking to the experience of working with White Star and their DAF, Ledn co-founder and CEO Adam Reeds said in a statement, “The team at White Star has strong expertise and understanding in bridging the gap between traditional venture, capital markets, and the digital asset space. The fund focuses on one of the fastest moving tech sectors while leveraging the firm’s global network to help its portfolio companies grow. From the first day, they’ve been a great partner who we can count on for the help and support we need to scale our business.”

Of course, White Star’s DAF comes as the digitization of finance grows increasingly mainstream. As Alavi explains, “Over the past 20 years, we have digitized every form of information, from newspapers and books to music and movies. With blockchain technology and digital assets, we are now digitizing value and money as well as building an entirely new financial infrastructure.” He went on to note how his firm was capitalizing on this, saying “We are hyper-focused on this space, and we expect to see further innovative use cases such as crypto credit, DeFi, NFTs, metaverses and more manifesting at an accelerated pace. We strongly believe blockchain and digital assets represent a colossal opportunity to grow the digital economy and are actively investing in crypto protocols, infrastructure, privacy, financial, gaming and social use cases.”

Although it’s proven to be a volatile week for cryptocurrencies, the oversubscribed nature of White Star’s Digital Asset Fund shows that there is still strong interest and belief in crypto and blockchain technology. Furthermore, given the started parameters of the fund, it looks as though the firm will help spur early round investment at a time when so-called “megarounds” tend to dominate the space. With $50 million in venture capital to disperse, expect to see White Star Capital leading plenty of FinTech and crypto rounds in the near future.


Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Amazon Highlights Small Businesses Ahead of Prime Day 2021

On June 21st and 22nd, e-retail giant Amazon will celebrate its annual Prime Day — its Black Friday-esque sales event. Ahead of those dates, the site is incentivizing support for small businesses. This includes allowing shoppers to earn a credit for shopping small, rewarding Amazon credit cardholders with additional discounts,...

FinTech Cash Advance Startup Clair Raises $15 Million

Another early-stage FinTech investment round is now in the books. This week, Clair announced that it had raised $15 million. The Series A was led by Thrive Capital — a firm which itself recently raised money, closing its Thrive VII fund at $2 billion in February. Some of Thrive's past...

Citi Introduces 'Custom Cash' Card With Up to 5% Back

It looks as though the battle of the credit card issuers is continuing to heat up. In addition to banks recently upping some of their offers to record highs, recent weeks have seen several new card products revealed. The latest card to shake thing up with its debut is the...