In a world where cryptocurrency becomes mainstream, Zurich-based digital assets investment advisor L1 Digital AG (L1D) is setting the stage for industry innovations. Garnering $400 million in assets under management and a recent $152 million funding for its second venture capital fund, L1D is leading a unique financing strategy. Seventy percent of the newly raised funds will back crypto startups, with the rest nurturing the growth of early-stage crypto-centric investment firms.
The investment approach of L1D is undeniably unique. It becomes the most active when the bear is open for business. During such times, advantages are even more pronounced, and operations are less risky as competition dwindles, explained Ray Hindi, L1D’s co-founder and CEO. This paradigm shift embodies L1D’s assertive strategy of capital allocation.
The focus of L1D’s investments diversifies across digital infrastructure, decentralized finance (DeFi), and the rising sphere of decentralized science (DeSci). These sectors represent new frontiers of crypto developments that the firm anticipates will mature as periods pass. L1D’s investment researcher, Jake Lynch calls attention to security enhancements and user-interface improvements being possible areas of strengths that could emerge post bear market, thus keeping the firm’s long-term optimism intact.
L1D’s illustrious portfolio attests its funding capacity. It successfully has supported institutional credit ecosystem Centrifuge, blockchain developer Chroma, crypto custodian Safe, decentralized exchange aggregator Li.Fi and treasury management startup Squads. Furthermore, L1D has also supported other notable industry investors such as Multicoin Capital, DeFiance Capital, Castle Island Ventures, and 1kx.
On the other side of the coin, some might question L1D’s focus on bear markets. After all, bear markets are typically associated with declining prices and investor pessimism. Additionally, concerns about regulatory compliance may arise. On this note, it is noteworthy to mention that L1D has registered with FINMA, Switzerland’s independent financial markets regulator.
Finally, L1D’s direct investments, which could range between $1.5 million and $7 million per project, promise a leap towards emerging crypto technologies. With financial backup from Swiss pension funds, family offices, wealth managers, and banks, L1D is ready to navigate future market landscapes, bull or bear.
Source: Coindesk
