Venture capitalist Tim Draper’s investment office Draper Goren Holm is sinking larger investments in virtual currency-only startups.
Draper Goren Holm, a cryptocurrency investment firm in Los Angeles, told CoinDesk that it raised $25 million for its first venture capital fund to buffer its startup accelerator and back blockchain companies at higher investment valuations.
The venture fund, announced last week, is planning to invest $250,000 to $500,000 in seed, Series A and a few later investment rounds, the firm said, whereas the accelerator funds pre-seed rounds for between $10,000 and $50,000 and 4% to 10% ownership stakes in startups.
“A majority of the value is captured in winning companies as they grow,” Alon Goren, a co-founding Draper Goren Holm partner with Josef Holm, said. “If we don’t have the cash to double down or triple down, we get diluted and lose some of that value.”
Draper Goren Holm, which brought Tim Draper onto its partnership