True Global Ventures sees NFTs as bigger than blockchain and plans for its latest fund to help grow the tokens.
The early-stage investor closed its blockchain-focused fourth fund, TGV 4 Plus, in September and surpassed its $100 million target. This is the first time True Global Ventures opened its fundraising to outside LPs.
The fund focuses on four investment verticals within blockchain: gaming and entertainment, financial services, blockchain infrastructure like green tokens and innovations in energy-efficient mining, and blockchain and artificial intelligence.
True Global Ventures began refining its investment thesis in March 2018.
Dusan Stojanovic, founding partner and director of the firm, told Venture Capital Journal that the decision to open up the fourth fund is to place a bigger bet on blockchain, especially in non-fungible tokens.
“NFTs will be bigger than mobile and the internet and even blockchain itself because you don’t even have to touch crypto,” Stojanovic said. “It’s reaching a way bigger audience than the more traditional blockchain and can change the world in a very interesting way.”
He added that the understanding of NFTs has dramatically improved in the past couple of years and that it’s easier to connect with new investors about its benefits.
NFTs are digital tokens representing a unique item that cannot be recreated or exchanged for another similar thing. For example, NFTs can be songs or digital art that are bought and sold by people digitally on a blockchain.
TGV 4 Plus will primarily focus on Series B to Series C investments. It is listed as a venture firm in Singapore.
Stojanovic said there is even the possibility of True Global Ventures creating a separate vehicle for follow-on investments.
David Rose, founding partner at True Global Ventures, said the company saw the benefits of investing in blockchain companies early on.
“We’re right in the middle of what was going on with this whole universe of blockchain, particularly as applied to things like fintech and gaming,” Rose said. “So, the decision was then made for our fourth fund to concentrate only on blockchain as we were realizing that this was the big future, so we were going to double down and construct the best in blockchain.”
The fund has already invested in NFT company Sandbox, blockchain gaming and NFT platform Animoca and Canadian bitcoin mining company Canada Computational Unlimited, which mines cryptocurrency using renewable energy like hydroelectricity.
As previously reported by VCJ, many investors feel bitcoin uses too much electricity to be part of any ESG portfolio.
Correction: The above story initially misidentified the fund’s focus. TGV 4 Plus focuses on Series B and C deals. Additionally, the correct titles of Dusan Stojanovic and David Rose are founding partners.