First Close for Pantera’s Venture Fund III; Crypto Investment Firm Offers Perks Aplenty
One of the crypto and blockchain industry’s pioneering investment firms – Pantera Capital – today closed their Venture Fund III for the first time.
The San Francisco-based Pantera – which has been focused entirely on Bitcoin (BTC) and other cryptocurrencies since 2011 – announced the June 30 closing last week in their monthly Pantera Blockchain Letter.
In it, the crypto investment firm disclosed various perks that investors in the now-closed first round of Venture Fund III will be able to derive. These spring from Pantera’s decision to continue their “tradition of offering a Co-Investment Class.” And so, “investors who commit $5mm or more will have co-investment rights to at least 10% of every deal.”
Benefit from Past Pantera Plays
In an equally as lucrative offering for these first-closing investors, they will be able to benefit from “the pro rata rights of the two previous funds (i.e., Venture Fund I and Venture Fund II) [becoming] granted to Venture Fund III.”
Such a transition of rights will take place if the first two funds get to a stage where they have “fully invested their follow-on reserves;” an incident Pantera considers “likely” to occur “at some point.”
The benefit for first-close investors in Venture Fund III is that they “will get the original cost basis of all deals.” As for those who invest in the subsequent close, they will have to “pay an 8% preferred rate on the called capital and would come in at higher valuations on any deals which raise again or have exits before the final close.”
Pantera Providing Chance to Co-Invest
Also, between July and the final closing – which Pantera expects to occur “sometime around the end of the year” – investors in the June Co-Investment Class will have the option to co-invest in the deals entered into by the major crypto investing firm.
Pioneer Pay Day
In making their case to prospective investors, the Dan Morehead-led Pantera disclosed several insightful titbits of portfolio-related information in last week’s blog post.
Whilst we encourage readers to see Pantera’s results for themselves, they revealed that eight of their companies have already “exited or paid significant dividends.”
Of these eight (one deal is pending regulatory approval), the realized value from their first two below-depicted venture funds is $100 million on investments of $13.6 million (i.e., a 7.3x return), all whilst “the majority of invested capital is still at work.”
Pantera Portfolio Continuing to Prosper
Having traversed some 30 countries across six continents, the proactive investment team has been able to see Pantera benefit immensely from early plays in well-known cryptocurrencies such as OmiseGO (OMG), ICON (ICX), and Enigma (ENG).
Pantera Payroll to Push Higher
Continuously growing, the Californian crypto investment firm is actively seeking to add a quantitative analyst, an executive assistant to the CEO, and an investor relations associate; all full-time positions.
A heavy travel schedule “to discuss Venture Fund III and the blockchain disruptions” is what awaits Pantera in the coming months.
Forming part of it, the investment firm will be hosting a dozen or so group lunches in the financial districts of various major American and British cities (registration details can be accessed here). Other global destinations where meetups have been booked in are Luxembourg, Hong Kong, and Berlin (Germany), according to Pantera’s blog post.
— Pantera Capital (@PanteraCapital) June 21, 2018
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