Crypto venture capital firm Castle Island Ventures today announced a new $250 million fund. The company said the new fund, named Castle Island Ventures III, would invest in new block chain startups and Web3 projects.
The firm will focus in particular on three “themes” to be financed with cash, according to a Wednesday blog post: monetary networks, financial services and internet architecture.
Castle Island said it envisions a financial system that is “more programmable and transparent, less politicized, exclusive and middle-of-the-road” and will support entrepreneurs building projects that “restore the internet to distributed ambitions” – in reference to Web3.
“The new fund will support our mission of partnering with visionary entrepreneurs building transformative businesses powered by public blockchains,” the company said. “We believe that public blockchains represent a paradigm shift in how we interact with money, financial services, and the internet itself.”
Web3 refers to a new decentralized Internet. It is currently in development, but Web3 applications can already be accessed, which are built on various blockchain networks, such as Ethereum, Solana, avalancheand even Bitcoin.
The idea with Web3 is that the companies that provide popular apps, like Facebook and Google, no longer have a monopoly on the internet and that users are in full control of their data.
Castle Island added that “the pendulum swings back to giving individuals rights, ownership and freedom online.”
And there is certainly interest in decentralized financial services (DeFi) and Web3 products. Challenge refers to applications that automate borrowing and lending and use blockchain networks. They’ve exploded in popularity: right now, according to DeFi Llama, there’s over $208 billion locked in DeFi products across all networks.
Castle Island said the growth of cryptocurrencies like Bitcoin and Ethereum, and stablecoinswere part of the transition “towards a rules-based monetary order”.
“Composable and decentralized Internet topologies will prove commercially superior to highly centralized models and allow new business models to emerge,” added today’s post.
Castle Island Ventures was founded four years ago and has invested in companies such as Bitwise, Coin Metrics and River Financial.