In a recent development reported, crypto venture capital firm C1, spearheaded by former Coinbase executives, is actively engaging with various cryptocurrency groups and Australian venture firms. The objective is to explore the acquisition of private holdings from investors through its substantial $500 million ($AUD 760 million) fund.
The outreach by C1 extends to prominent entities in the crypto space, including gaming and metaverse-focused venture capital firm Animoca Brands and Chainalysis, a renowned blockchain analysis entity. Sources indicate that C1 has proposed acquiring private holdings at a discount ranging from 50% to 80% based on the entities’ last valuations.
Australia has maintained a cautious stance toward the broader crypto industry, particularly in the aftermath of the FTX collapse. The government has proposed a regulatory framework that could potentially delay the issuance of licenses to Australian digital asset platforms until 2025. Furthermore, recent tax guideline updates impose capital gains tax on wrapped tokens, and the government has declared a postponement in the introduction of a central bank digital currency (CBDC) for several years. However, with the crypto market gaining traction, sentiments within Australia may be evolving.
The information disclosed in the report is attributed to a pitch deck outlining C1’s strategy. The firm aims to target entities with a “minimum valuation of $300 million in their last funding round, preferably Series C and later.” C1 intends to deploy funds in the range of $20 million to $50 million per investment.
C1’s pitch deck emphasizes the attractiveness of the digital assets market in the secondary market, citing current market conditions in both public and private sectors, hyperinflation, and rising interest rates.
In response to the report, Dr. Najam Kidwai, co-founder and managing partner of C1, clarified, “C1 did not authorize this article, and we have not met with either company directly as of this time.”
As of now, Animoca Brands and Chainalysis have not provided immediate responses to CoinDesk’s request for comments on the matter.
