In a strategic move, Lightspeed Faction, a joint effort by Lightspeed Venture Partners and Faction, has announced the establishment of Lightspeed Faction Fund I (“Faction”), a $285 million early-stage venture fund dedicated exclusively to blockchain technology. Faction is a web3 venture firm founded by industry veterans Banafsheh Fathieh and Samuel Harrison.

The November 9th announcement coincides with a pivotal period for the web3 industry, navigating a recovery from the repercussions of the crypto winter. The third quarter of 2023 marked the seventh consecutive decline in quarterly funding for web3 startups. However, recent fund launches, including the $662 million initiative by Japanese financial services company SBI Holdings, suggest a gradual resurgence of investor interest across web3, the metaverse, AI, and Fintech startups.

Faction's distinct focus centers on supporting projects that deliver tangible real-world utility to users and businesses. Noteworthy investments include supporting zkSync developer Matter Labs, Aave's social media protocol Lens, and Crossmint, a dedicated payment tool for NFT developers.

The blockchain ecosystem is full of promising projects looking to disrupt everything from financial systems to telecommunication and we look forward to collaborating with them to nurture the next phase of blockchain innovation.

Banafsheh Fathieh, Co-Founder and General Partner at Faction

Lightspeed Venture Partners will offer support on blockchain-related matters, contributing to collaborative growth. Samuel Harrison, Co-founder, and Managing Partner of Faction, emphasized the venture firm's track record, having deployed over $500 million towards blockchain and early-stage startups.

As Lightspeed Faction positions itself to foster the next generation of web3 innovators, the $285 million fund represents a substantial injection of capital into an industry poised for renewal, indicating cautious optimism and renewed confidence in the future of web3 startups.

Disclaimer: Lightspeed Faction Fund I (“Faction”), is a $285 million early-stage venture fund dedicated exclusively to blockchain technology. Faction Ventures, LLC (“Faction”) and Lightspeed Management Company, L.L.C. (“Lightspeed”) are separate businesses that operate independently of each other. Faction is a registered investment adviser under the United States Investment Advisers Act of 1940, as amended. Faction advises its own fund(s) and does not advise any Lightspeed clients, and Lightspeed does not advise Faction or any of its clients.