VC firm Cypher Capital forays into blockchain space with $100Mn fund

VC firm Cypher Capital forays into blockchain space with $100Mn fund

The VC firm plans on investing 40% of total investment in Indian crypto startups to leverage the country’s 100 million crypto users

UAE-based private venture capital firm, Cypher Capital has announced the launch of a blockchain fund worth $100 million, aiming to infuse 40% of the investment in cryptocurrency and blockchain startups in India.

The primary objective of investing a $40 million seed fund in Indian startups is to benefit from the country’s cryptocurrency user base which spans beyond 100 million.

Even though India has an ambiguous regulatory framework and sceptic response, Vineet Budki Managing Partner of Cypher Capital, is betting on the possibility that the policies will favour crypto in future.

In addition to Cypher, a large number of VC firms are eyeing the Indian cryptocurrency and blockchain market – which witnessed a total of $638 million funding last year, boosting startups in the country.

Some of the major venture capital investors in the Indian market include Antler India, Andreesen Horowitz, Kalaari Capital, and Sequoia India.

According to Mr. Budki, India’s 100 million crypto user base will emerge as the next hotspot for cryptocurrency adoption and Cypher aims to educate users about DeFi (Decentralised Finance) lending/borrowing, play to earn, and other user cases.

Cypher Capital intends to foster blockchain startups to ultimately create valuable companies. The VC firm is betting on the potential of the existing cryptocurrency and blockchain market in India.

Mass adoption is the way to go

While blockchain offers a spectrum of use cases theoretically, not all of them are realistically possible except for tokenization of physical assets – which could allow investors to own assets that previously required a massive amount of capital.

Blockchain can help divide large assets into smaller fragments, increasing affordability with less expensive capital requirements.

Existing TDS and tax of 1% and 30% respectively crypto trade is not a hindrance for Cypher Capital. From long-term perspective, the regulations are likely to neutralize after the country experiences mass adoption of cryptocurrencies and blockchain.

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