The New York-based cryptocurrency investment firm DBA has raised $68 million for its second venture fund, significantly surpassing the $50 million raised in the first fund of 2023.
The company also disclosed that one or more funds managed by its co-founders hold a significant position in HYPE tokens.
This announcement comes as venture investment activity in the cryptocurrency infrastructure sector accelerates ahead of 2025, coinciding with a situation where competitive allocations are concentrated in early-stage rounds.
What happened?
DBA, co-founded by Michael Jordan, former co-head of investments at Galaxy Digital, and Jon Charbonneau, former researcher at Delphi Digital, described both funds as closed-end vehicles with a 10-year maturity that invest across both private and public markets.
The company stated that it focuses on leading investments in early-stage deals but participates in rounds at all stages.
The portfolio includes infrastructure projects DoubleZero and Monad, stablecoin application Payy, capital raising platform MetaDAO, and Alpen Labs, which co-led an $8.5 million round in January alongside Cyber Fund.
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Why is it important?
DBA has also disclosed notable potential conflicts of interest. Regarding a governance proposal to reduce the total supply of HYPE tokens on the Hyperliquid network, it stated that 'one or more investment funds managed by DBA hold significant positions in HYPE tokens, and two co-authors of the proposal also personally hold tokens.'
This announcement is significant in that DBA simultaneously claims to be advocating for supply changes that could impact token value.
The company's portfolio shows a concentrated bet on base layer infrastructure, Bitcoin scalability, and decentralized exchange infrastructure. These areas have attracted significant capital over the past 12 months. DoubleZero, in which DBA has invested, closed a $28 million seed round in March, led by Multicoin Capital and Dragonfly at a $400 million valuation.
DBA aimed to raise $500 million in its first fund in 2022 but significantly reduced this target amid a broader market downturn.
The current scale of the two funds closed by the company amounts to approximately $118 million in terms of committed capital. While this is somewhat smaller compared to large multi-strategy crypto vehicles, it aligns with the company's strategy to maintain only 10 to 15 concentrated positions at all times.
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