BITKRAFT Raises $165M Funding for its BITKRAFT Venture Fund I
Gaming, esports, and interactive media early and mid-stage investment platform BITKRAFT Esports Ventures announced the closing of its BITKRAFT Esports Venture Fund I at $165M USD. The venture capital firm, which launched its first $18M Pre-Seed fund in 2017, now invests out of its $165M Venture Fund I and has made over 50 investments deploying more than $70M since its inception.
BITKRAFT Ventures’ new fund received backing from a global investor base, including Carolwood, the family office of Bruce Karsh; Declaration Partners, the investment firm backed by the family office of David M. Rubenstein; JS Capital, the investment firm of Jonathan Soros; as well as corporate investors such as adidas, WPP, Advance (the owner of the Leaders Group, The Esports Observers’ parent company), and Logitech. According to BITKRAFT Founding General Partner Jens Hilgers, “multiple investors that are invested in our Pre-Seed Fund also invested in the Venture Fund I.”
The funding process for the Cayman Islands-based BITKRAFT Esports Venture Fund I, L.P. began in December 2018 with an initial target of $125M. Just before the initial funding goal of $125M was reached in March 2020, BITKRAFT Ventures sold securities worth roughly $122.8M to 75 investors.
The Cayman Islands is one of the most popular jurisdictions for the establishment of venture and hedge funds, which is reflected in total net assets under management in Cayman-based funds of $4T as of 2017, according to the Cayman Islands Monetary Authority’s (CIMA) 2018 annual report. The country attracts funds with its stable political environment, the ability to raise and deploy capital in a tax neutral environment with no capital gains, income, withholding, estate or inheritance taxes, and low levels of regulatory compliance or disclosure.
Since BITKRAFT Ventures started the funding process for its Venture Fund I, the Cayman Islands changed its Private Funds Law in February 2020, which means that many venture capital funds that previously did not need third party audits will now be required to have their financial statements audited and filed with the CIMA. Hilgers told The Esports Observer that those regulatory “changes did not have any adverse impact on the BITKRAFT Venture Fund I.”
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