The last time Archetype launched a venture fund, the crypto landscape was dominated by Sam Bankman-Fried during a period of rapid growth that soon collapsed. Fast forward just over three years, and with a revitalized bull market in play, the New York-based investment firm is unveiling a new fund: a $100 million initiative aimed at supporting the seed rounds of innovative blockchain enterprises. In a conversation with Fortune, Ash Egan, founder and general partner of Archetype, expressed his belief that blockchain technology is on the brink of achieving mainstream acceptance. He compared the current landscape to the internet’s evolution, suggesting we are in a phase akin to “post-AOL, pre-Uber.” Egan stated, “We believe that crypto infrastructure will be foundational to global commerce if viewed over a long-term horizon.” This assertion resonates with the ongoing discussions in the sector, where advocates have consistently argued that crypto has the potential to transform various industries, including payments, IPOs, and real estate transactions. With a favorable regulatory environment and increasing institutional interest from Wall Street, the moment may finally be ripe for crypto to shine, and Egan’s firm is poised to invest new funds into this promising landscape.
Archetype previously raised $55 million for its inaugural fund in 2021, followed by a significantly larger $155 million fund in 2022 during the peak of the last crypto surge. Although its latest fund is smaller at $100 million, Egan emphasized that this choice was intentional, aiming to collaborate with the right limited partners. Notably, only one new limited partner has joined the current fund. Archetype’s investor base consists of a mix of institutional players, including pensions, endowments, and sovereign wealth funds, alongside notable funds of funds like Accolade Partners and TrueBridge Capital, as well as the esteemed venture firm Sapphire Ventures.
The firm has already celebrated significant successes from its portfolio, including the acquisition of wallet provider Privy by payment giant Stripe earlier this year. Additionally, US Bitcoin Corp successfully executed a reverse merger with Hut 8, which is now collaborating with Eric Trump’s American Bitcoin initiative. Archetype’s investment strategy also includes liquid assets, boasting more than $10 million in Solana and $40 million in Ethereum, with a total of around $350 million in assets under management. Egan noted that Archetype has returned approximately $10 million of its first fund to investors, although he emphasized a long-term strategy. “If we have successful investments, we prefer not to exit too early,” he remarked.
Egan, a seasoned veteran in the cryptocurrency arena, possesses the experience to navigate the industry’s future trajectory. His interest in crypto was sparked by the emergence of Ethereum and smart contracts back in 2015 while he was employed at Converge, a small venture capital firm in Boston. There, he made his inaugural crypto investment in the blockchain intelligence company Chainalysis. Subsequently, he joined Consensys, an Ethereum-centric software provider, to establish its venture arm during the initial coin offering boom of 2017, later becoming a partner at Accomplice before founding his own firm. Egan established Archetype in New York with the vision that SoHo could evolve into the “Sand Hill Road” of the coming decade, a reference to the epicenter of Silicon Valley venture capital. Numerous leading crypto firms, including decentralized exchange Uniswap and the social platform Zora, are located within close proximity to Archetype’s headquarters.
Looking ahead, Archetype plans to invest in companies with a focus on consumer applications, such as Remix, an app that leverages crypto and AI technology to enable users to design mobile games. Egan noted, “The future lies in creating groundbreaking products; securing your first 1,000 true fans is just the beginning.” He believes this strategy is essential for establishing robust networks.
On the latest episode of the Fortune Crypto Playbook vodcast, senior crypto analysts from Fortune discuss the key factors currently influencing the cryptocurrency market. Tune in now for insights and analysis.
