Following the rapid growth of crypto activity due to friendly policies pursued by Donald Trump and regulatory changes in Europe, companies regained their interest in the digital asset industry, especially after the crypto winter that saw VC investment plunge from USD 21.2 billion in 2022 to USD 4.1 billion in 2023 globally.
RockawayX plans to utilise 50% of the funds raised for blockchain startups based in Europe, as many crypto founders considered relocating to the US due to friendly regulations. The company believes that its local network is showing opportunities in Europe that are yet to be explored. Some of the crypto startups that RockawayX has previously invested in include London-based crypto banking company BVB Group and decentralised finance protocol Morpho.
RockawayX’s limited partners (LPs) back up the VC funds and include private equity firms, family offices and high net worth individuals, along with cofounders of crypto blockchains Starkware and Solana. The company claims it was able to raise amid the LP partner climate as it returned capital to its LPs. Its first fund was able to deliver 2.1x distributed to Paid-In, a term used to describe the total capital that a fund has returned to its investors.
The European VC funds are typically lower than their US counterparts, where VC firms raise billions of dollars to invest in the industry. According to Shift, some European crypto funds have struggled to close the gap. Last year, a Franco-German VC firm XAngle wound down its web3 fund after failing to find enough backers. Many crypto companies opt to launch their own token on crypto exchanges, which theoretically offer an opportunity for VCs to liquidate their positions.
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