A crypto incubator program will be launched by VC Tribe Capital with a $25 million capital raise
The crypto space is seeing an increasing amount of capital coming into the sector, with Tribe Capital raising $25 million from outside investors and launching its incubator program, Tribe Crypto Labs, according to TechCrunch. The firm manages approximately $1.5 billion in assets and has made investments in crypto companies such as FTX and Kraken, as well as blockchains such as Cosmos and Frax.
Approximately 30% of the firm's assets are invested in crypto assets. The firm traditionally invests in early-, mid-, and late-stage companies, but last year decided to try something new. "We saw an opportunity to take a more proactive approach and began considering an incubation strategy," Sethi explained.
Through this program, the company will work with crypto developers and use its tech and operations expertise to create and accelerate opportunities for early-stage investments in the crypto industry. According to Sethi, "when it comes to moving deliberately, we are going to be cautious.". "We expect to launch our first two projects first, and then maintain about one project per year from there."
This program will establish partnerships, joint ventures, and other decentralized initiatives through the Cosmos ecosystem as well as layer-1 blockchains such as Avalanche and Solana, Sethi explained. The organization intends to raise $5 million to $10 million per additional project as it scales and extends its incubation program.
Among its first incubator projects is Nibiru, a financial derivatives protocol and layer-1 cryptocurrency that is intended to enable perpetual futures and options trading within the Cosmos ecosystem. CoverRe, a consumer auto insurance company incubated by its partners since 2016, represents the second incubation.
Though cryptocurrency markets have been unstable recently, Sethi said the team has not backed away from launching the program or raising capital. We expect crypto and DeFi to dominate global financial services in 5-10 years while also increasing the pie for such services dramatically."
Sethi stated that he and his team are long-term, patient investors regardless of asset class. Thus, we build regardless of the market conditions, whether it is a bull market or a bear market. Our expectations are built up for the next bull market, as well as for the next, and the next, and the next.”