Bitkraft Ventures Secures $220.6M for Second ‘Token’ Fund, Boosting Venture Capital Portfolio

Bitkraft Ventures Raises $220.6M for Second ‘Token’ Fund

Gaming-focused venture capital firm Bitkraft has successfully secured $220.6 million for its second “token fund,” surpassing its total target of $240 million, as revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC) on March 30.

Bitkraft’s Crypto Investment Strategy

Bitkraft, founded in 2016 by gaming and esports veteran Jens Hilgers, specializes in seed through Series B investments in game studios, gaming platforms, and game-related technology across both Web2 and Web3. Partner Carlos Pereira outlined the firm’s general Web3 investment strategy during an interview with CoinDesk, though Bitkraft couldn’t comment on the specific nature of the investment mandate for the new fund.

Bitkraft’s Growth and Focus on Gaming

With approximately $600 million in assets under management, of which one-third is devoted to Web3 opportunities, Bitkraft has become a registered investment advisor. Pereira stated, “We’re gaming investors, first and foremost, with an operating and investing background that precedes the Web3 gaming bull run by a lot.” Bitkraft’s investment approach is focused on underwriting great games with a combination of equity and token purchases, aiming to maximize value creation through primary and secondary sales.

Bitkraft’s Investments and Market Outlook

Bitkraft’s recent investments have included popular game developer CCP Games, known for creating Eve Online, and blockchain-enabled mobile game developer Jungle. Despite the bear market that followed the 2021 bull market, Pereira noted that the narrative of new game developers entering the Web3 space and receiving venture capital backing is still unfolding. These developers are in the early stages of their development cycles, which typically span two to four years.

Investment Strategy Based on Experience and Background

Bitkraft’s move into gaming was motivated by the team’s experience as gamers, rather than solely capitalizing on the GameFi boom that emerged in 2021 with play-to-earn titles like Axie Infinity. The firm’s background in funding Web2 studios that build complex environments has translated into a preference for Web3 projects led by developers with higher-than-average experience, often gained through decades of working at Web2 studios.

Conclusion

Bitkraft Ventures has successfully raised $220.6 million for its second “token” fund, further solidifying its position as a leading gaming-focused venture capital firm. With a strategic investment approach that leverages its team’s gaming expertise and experience, Bitkraft continues to support game studios, gaming platforms, and game-related technology in both Web2 and Web3 spaces.