Peter Thiel's Founders Fund takes a stake in crypto accelerator Alliance
Founders Fund has made a “strategic long-term investment” in Alliance. The venture capital firm has taken a minority stake in Alliance, Alliance co-founder Imran Khan told The Block.
Founders Fund has made a "strategic long-term investment" in Alliance, the crypto accelerator said Wednesday, without disclosing the size of the investment.
It is a "minority stake," Alliance co-founder Imran Khan told The Block when asked — declining to specify the exact percentage. Khan said the transaction took place last October, with the partnership details finalized in January.
Though Alliance had already listed Founders Fund as an investor on its website around two months ago, Khan added that the news is now being publicly disclosed.
The Founders Fund-Alliance deal
As part of its investment, Founders Fund will provide support to Alliance's portfolio companies.
"We're investing in and partnering with Alliance DAO because we believe there is a need for crypto-specific accelerators," Joey Krug, partner at Founders Fund, told The Block. "Our partnership focuses on supporting Alliance rather than starting our own accelerator, which we think aligns better with founders' long-term interests. We'll act as a resource for Alliance companies, and look forward to investing in promising startups coming out of the program," Krug added.
Krug joined Founders Fund last year after spending nearly six years at the crypto venture capital firm Pantera Capital as co-chief investment officer.
Alliance Fund III
Founders Fund's investment in Alliance comes as the crypto accelerator is in the process of raising its third fund. Earlier this month, The Block reported that Brevan Howard Digital and Galaxy Digital each invested $10 million in Alliance Fund III's first close, with the fund aiming to raise an additional $80 million by July.
Khan clarified that Founders Fund hasn't invested in Alliance's funds but has taken a stake in the accelerator.
Besides Founders Fund, venture capital firm Initialized, an investor in companies like Coinbase and Talos and with assets under management of over $3 billion, also holds a minority stake in Initialized since 2022, Khan revealed.
Alliance was founded in 2020 and has accelerated 12 cohorts with over 200 startups. The accelerator has backed some high-profile startups, which have a combined valuation of billions of dollars, it said. Its portfolio includes projects such as Arbitrum, Immutable X, Axie Infinity and Tensor.
In addition to Founders Fund, Brevan Howard Digital and Galaxy Digital, Alliance's other investors include billionaire Mark Cuban, Jump Capital, Solana Labs co-founder Anatoly Yakovenko and Visa head of crypto Cuy Sheffield.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
From the Token Frenzy to the $1.3 Trillion AI Server Blue Ocean: AI Inference Computing Power Fully Explodes, Industry Leaders like Dell Usher in the Golden Era of "Volume, Price, and Market Share"
Leading global AI server cluster manufacturers such as Dell are simultaneously benefiting from two major growth dividends: the accelerated expansion of the AI server market and a significant increase in the order shares from core AI cloud computing customers, including large enterprises and new cloud providers. They are not merely passively profiting from hardware price increases.
GPU Cloud Services Surge in Price: Nebius Raises Prices Again by 20%, Computing Power Supply Side Gains Bargaining Power
From October 1st, Nebius will raise prices for its entire GPU cloud service line by approximately 20%, with multiple chips from H100 to B300 seeing increases. This marks the second round of price hikes in recent months, and the cumulative increase for B300 has reached 56%. Demand visibility extends beyond 24 months, with customers eager to purchase Blackwell computing power, even willing to pay a premium in auctions. The supply-demand imbalance for AI computing power is reshaping the entire industry’s negotiation landscape, as bargaining power is quietly shifting to the supply side.
Crypto prices
More
