Fuse Capital Seeks to Raise $50M to Invest in LatAm Web3 Startups

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Fuse Capital Seeks to Raise $50M to Invest in LatAm Web3 Startups

Based in Brazil Fusible capital began raising Fuse Capital Fund II, whose central thesis will be to invest in the next generation of web3 startups in Latin America. The initiative comes after successfully investing in blockchain and crypto startups in their first fund, whose thesis had an agnostic approach. The goal is to raise $50 million.

Fuse Capital Fund II will appeal to companies solving traditional global problems, still dominated by the web2, while using technologies integrated into the web3 framework, such as blockchain, DeFi (decentralized finance), stablecoins and NFTs. Solutions can address a variety of industries, from open finance to healthcare, infrastructure, e-commerce, and insurance, among others. Another differential of the fund will be its duration of five years, it is a premise that the invested companies issue tokens within this period, allowing divestment from the sale of these tokens. Contributions will be approximately $1 million.

“Our mission is to invest in alternative assets that are still little explored in Brazil and around the world. We are able to access this sector thanks to an excellent network of relationships and knowledge of the sector that has been developed over the last few years,” says Joe Zecchin, founder of Fuse Capital. “Over $33 billion has already been invested in crypto globally through venture capital, there is a market that is starting to show its potential and now is the perfect time to enter it. Latin America remains to be explored and we are positioning ourselves as pioneers and leaders in the region. Zecchin highlights the $4.5 billion crypto fund raised this year by American as a benchmark Andreessen Horowitzone of the world’s leading venture capital managers.

Fuse Capital Fund I has already invested in more than a dozen startups in the global ecosystem in various sectors, such as healthcare, AI, edtech, fintechs, blockchain and crypto. A relevant part of these investments, however, brought Fuse closer to the concept of web3, making the manager see the potential of this still nascent market. Examples of investments already made by the manager in this direction, still in the first fund, are Hashdexthe largest cryptocurrency manager in Latin America; arthur Mininga Bitcoin ESG miner that uses flare gas as a power source; Illios, responsible for the extension of the Helium network in Brazil; and Creditwhich allows credit fintechs to access the global market via the web3.

“These investments opened our eyes to the potential of this sector and we realized that it was time to take a stronger step in this direction. From time to time, there are new technologies that change everything. That’s what happened with the Internet in the past, and we think that’s what’s going to happen now with block chain. We see the bridge to that future up close with initiatives that bring the real world closer to what’s to come, and we want to invest in the startups that will be most successful in this transition, which we call web2.5,” says Dan Yamamuraalso founder of Fuse Capital.

As it has been operating since the beginning of its existence, Fuse will select its investments based on a fundamentalist approach, which involves an in-depth analysis of projects, added to the reach of its network, which allows the manager to access the best opportunities. The fund will also have a strong group of advisors, collaborating on business development, tokenomics, regulation and smart contract auditing. The group is made up of relevant names who have worked for companies such as Hashdex, VBSO Lawyers, Transfer Band, Binance, Software bank, Framework companies and 01 Capital.

  • Francis is a journalist with a bachelor’s degree in classical civilization, he is particularly interested in North and South America.

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