A Complete Rated List of Crypto Exchange Venture Capital Funds

An exchange VC crypto fund refers to an investment organization created by an established cryptocurrency exchange. As any other crypto fund, it is designed to invest money in promising blockchain startups and their tokens. Crypto exchange VCs leverage their extensive experience in the design, launch and promotion of crypto tokens and companies, along with  comprehensive market insights they have, to identify, invest in and make profit on innovative projects with high growth potential. By operating within the cryptocurrency exchange ecosystem, these funds gain a unique advantage in discerning and selecting the most promising blockchain ventures. The crypto exchange VCs prioritize their investments in several highly sought-after areas within the cryptocurrency space, including DeFi, CeFi, GameFi, NFT, blockchain infrastructure and so forth.

Crypto ventures support a wide range of blockchain-related projects. The type of crypto venture is chosen by the team, responsible for research and making investment decisions in the fund depending on the market trends and the fund’s goals.

Here is a brief recap of crypto funds’ main areas of focus:

1. DeFi Sector: DeFi projects aim to provide decentralized financial services, such as lending, borrowing, yield farming, decentralized exchanges (DEXs), and liquidity provision. 
2. Non-Fungible Tokens: Crypto funds regularly invest in NFT collections, marketplaces, platforms for storing digital art, collectibles, gaming assets, and other NFT-based applications.
3. Blockchain Infrastructure: These projects focus on improving the underlying blockchain technology, such as layer 0, 1, 2 and 3 networks and protocols and other solutions. 
4. Cross-Chain Solutions: Crypto funds also contribute to projects that enable seamless communication and asset transfers between different blockchain networks, fostering interoperability of blockchain space.
5. Blockchain Gaming: Another blockchain sector that crypto exchanges’ VCs invest in are gaming platforms and metaverses that leverage blockchain technology to offer unique in-game asset ownership, play-to-earn mechanics, and decentralized gaming experiences.

DAOs: Crypto funds support projects that develop DAO frameworks and governance platforms.

The legality of crypto exchange venture funds changes depending on a particular country's laws. In many countries, cryptocurrencies and crypto venture funds operate legally. These countries often have regulations in place to govern the use of cryptocurrencies and provide guidelines for operating crypto-based investment funds. However, in some countries, the use and possession of cryptocurrencies are outright illegal. Vietnam, Bangladesh, Nigeria and Bolivia are a few well known places, where the government has taken a stance against cryptocurrencies, and their operations are considered fraudulent.

The process of obtaining crypto VC funding is not vastly different from attracting traditional VC funding. The only difference is that crypto exchange funds, given their direct access to crypto exchange infrastructure and resources, endeavor to make the most profit on a project’s token by all means during the first days after a toke listing. Sad truth. 

Here we gathered the key steps every project undergoes when seeking collaboration with a crypto exchange fund:

1. Go through various crypto exchange VC programs and choose ones aligned with your startup's vision and objectives.
2. Get to know all the requirements of a particular program you want to join.
3. Prepare theses and a short presentation to pitch your startup, tokenomics, business plan, or other type of introduction that is required by a crypto fund. Showcase your startup's problem-solving approach and UVP. 
4. Once you have submitted your application, you can expect to receive a response within a few weeks. During this waiting period, the reviewing process will take place, and you will be notified of the outcome in due time.
5. After being accepted, you can start to enjoy the advantages and embrace the valuable experience of working with a crypto exchange VC fund.

To effectively rate crypto exchange venture capital funds, CoinLaunch has developed a unique ranking system, called CoinLaunch Score. It consists of more than 80 variables related to a crypto exchange fund’s activity. We evaluate a fund’s performance, influencers, co-investors, feedback from past clients/partners, the number of investments, and other important data. It is worth noting that we constantly update all information, so you can confidently rely on the data you access.