VC Shima Capital Launches $200M Crypto Fund as Web3’s ‘Missing Layer’

Shima Capital, a global venture capital firm that invests in early-stage blockchain companies, recently announced the launch of its debut fund, Shima Capital Fund I. According to reports, the fund has raised $200 million and will be used to help new digital asset companies develop in the crypto space. 

Several prominent crypto investors contributed to the fund, including Dragonfly Capital, Bill Ackman, Animoca, OKex, Mirana Ventures, Republic, and Andrew Yang. In addition, Yida Gao, founder and managing partner of Shima Capital, said that more than half of the company’s team is dedicated to post-investment operational support services. These services include engineer recruitment, community marketing, and token design.

The fund’s first investments will be in pre-seed and seed stage companies. They plan to invest $500,000 to $2 million in pre-seed funding for crypto and blockchain startups that use consumer products, decentralised infrastructure, and futuristic blockchain technology. Gao said they want a “margin of safety” in their investments.

Shima Capital’s Founder Knows What It Takes to Succeed in Venture Funding.

Gao will oversee the fund’s investment strategy. Before this, he was the Co-Founder and General Partner of Divergence Digital Currency – a $100 million or more crypto hedge fund that has seen 15-fold growth since it was founded in 2017. Gao has also commented that the fund will be investing in layer-1 and layer-2 technology and projects related to security and the development of zero-knowledge proofs.

Gao’s focus on the earliest funding rounds and providing a full suite of value-adds is designed to produce solid returns for LPs while aligning incentives with founders. He is joined by a group of investors and professionals with a track record of sourcing talent and driving successful investments at technology companies.

Gao’s team includes Carl Hua, who was previously with Celsius, as the chief technology officer; Alex Lin, as the head of research; and Chris Adams, who comes to the team with experience as the head of talent from his time at Atomic VC. With this wealth of experience and knowledge amongst the group, Gao is confident in their ability to succeed.

What’s Benefit for the New Crypto Startups?

Shima Capital is planning on starting up an incubation model, which would include the team working with a few companies every year to offer consulting in tokenomics, governance structure and other inventive resources.