White Star Capital raises $120M for Web3 investment fund

White Star Capital, a technology venture capital firm, has raised $120 million for its second Digital Asset Fund (DAF II), which will invest in crypto networks and early-stage blockchain and Web3 enterprises.

The fund is principally backed by Ubisoft, the video game publisher, and will focus on decentralized finance (DeFi) and gaming. It will put up to $7 million into each of the 20-25 companies it will invest in across North America, Europe, and Asia.

Because of the company’s increased focus on DeFi, Web3, and blockchain-based technology, it appears that it will begin to promote enterprises that use or build metaverse solutions. This would place it in the space where Animoca Brands has carved out a nice little niche for itself.

Stacks-based DeFi protocol ALEX and decentralized exchange (DEX) ParaSwap are among White Star’s previous investments since its first DAF in 2020.

On Sunday, it also lent its support to the Bitcoin Odyssey, an initiative in which investment firms would invest $165 million in solutions aimed at increasing Bitcoin (BTC) acceptance.