amid regulatory uncertainty around the future of blockchain technology and crypto trading.
The fund is likely to invest anywhere from $75 million to $100 million in Indian blockchain and crypto startups, people close to the development told ET.
Even as a few venture funds are
restructuring strategy and pausing investments due to a potential ban on all private cryptocurrencies as a Bill on cryptos is likely to be tabled in the parliamentary session that began Monday, Draper Dragon Fund, part of Draper Venture Network, is bullish on India’s prospects.
A Lok Sabha bulletin published on last Tuesday listed The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, among legislation to be taken up in the winter session of Parliament, which “seeks to prohibit all private cryptocurrencies in India” but allows “for certain exceptions to promote the underlying technology and its uses”.
“Crypto will work out fine in the long run in India,” said Andrew Tang, partner at Draper Associates, referring to the climate of regulatory uncertainty. The fund, founded in 2006 by Larry Li, Andy Tang, Bobby Chao and Tim Draper, also has offices in Toronto, Shanghai, Hong Kong, Singapore.
Its India headquarters will be in Bengaluru. The fund is looking to invest in
metaverse projects,
non-fungible tokens and gaming, preferably at the early stage.
So far, the fund has invested in four startups in the crypto space in India: crypto gaming firm CropBytes, wallet company Safle, cross-chain liquidity company Pontoon Finance and metaverse company Polkamusic, Akshay Aggarwal, who will lead advise as a venture partner for South Asia at the fund, told ET.
Aggarwal is also the cofounder of Blocumen Studios and Blockchained India.
The crypto and blockchain startups birthed in India have attracted abundant international risk capital this year on the back of a thriving developer community as well as its large consumer base. One of the most prominent Silicon Valley venture capital funds, Andreessen Horowitz,
also made its entry into the Indian market this year with its investment in crypto-selling platform Coiswitch Kuber. Funds like Jump Capital and Antler Global also remain bullish about their investment strategy in India.
India
has been ranked second in terms of crypto adoption by retail users, according to a report released earlier this year by blockchain data platform Chainalysis.
“At the fund, we regard Indian talent very highly. We believe the global impact of the web3 industry is going to have a very strong India quotient. For us, this wave is only starting, we were early investors in the metaverse, we want to push forward on our early success,” Aggarwal said. “We have ample experience sailing in turbulent regulatory weathers and we intend to provide that as an advantage to the founders we back.”
Additionally, Singapore-based crypto exchange
Coinstore launched its operations in India and has allocated $20 million for India expansion. The company plans to open offices in Bengaluru, New Delhi and Mumbai and has 100 immediate openings for hiring local talent in India for its customer support, marketing and operations division. It has 400,000 registered users, including around 60,000 from India, a spokesperson said.
