Dispersion Capital Opens $40m Decentralized Infrastructure Fund

Dispersion Capital, an early-stage venture capital firm, has emerged from stealth mode and announced the launch of a $40 million fund to support startups working on infrastructure for Web3 projects.

The firm already has investments in 20 companies, with a majority of them receiving follow-on financing. According to a an official press release, the venture capital firm aims to invest in startups that are developing cutting-edge infrastructure for a multichain, multi-currency, and multi-platform world, with a particular focus on Web3 and decentralized platforms.

The fund has received backing from prominent organizations in the industry, including Ripple, HashKey, Wemade, Circle Ventures, Alchemy Ventures, Lightspeed, Cherubic Ventures, Forte, and NGC Ventures. This list also includes participation from individual general partners working in the Web3 space.

Dispersion Capital’s founder, Patrick Chang, explains that the goal of the fund is to elevate Web3 to a level similar to cloud computing. Chang highlighted the need for stronger infrastructure support in the Web3 ecosystem, particularly in areas such as onboarding, scalability, and security.

“To unlock the true power of these developers and enable the creation of groundbreaking applications, Dispersion Capital is dedicated to enabling the future robust and mature infrastructure that goes beyond protocols and networks,” Chang shares.

Dispersion Capital’s investment focus lies in funding startups working on specific layers of Web3, including fintech and gaming infrastructure, security, data, and platforms that challenge legacy industries. By supporting these startups, the venture capital firm aims to address the perceived immaturity of Web3 infrastructure and enable the development of groundbreaking applications.

The timing of Dispersion Capital’s launch is significant in that it comes at a time when crypto venture capital is considerably accelerating into the direction of zero-knowledge (ZK) protocols and integrations. Firms backed by Dispersion Capital working in this area include Mystiko Network, Chaos Labs (security and risk management), and ZettaBlock (Web3 analytics).

While investments in Q1 2023 were down compared to the previous year, emerging markets such as privacy, data management, and security for Web3 protocols show potential for growth. This suggests that Dispersion Capital could be well-positioned to navigate regulatory uncertainty and support startups in these emerging markets.

Chang is a seasoned investor with web3 credentials and nearly two decades of experience. He previously led Samsung Next‘s blockchain investments and played a key role in defining investments in notable web3 startups such as Dapper Labs, Flow, and Alchemy. Chang’s expertise and track record have garnered support from various industry pioneers who believe in his ability to spot ambitious founders and scale the next generation of web3 infrastructure.

Dispersion Capital’s vision aligns with the concept of the “Dispersion Economy,” which represents the evolution of the decentralized economy. The firm aims to disperse blockchain’s game-changing decentralization throughout the ecosystem, making decentralized technology functional, accessible, and scalable for developers. By funding the fundamental tech layers needed for this future, the venture firm strives to empower Web3 builders and developers to deploy on dispersed, decentralized infrastructures.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.