Psalion launched its third venture capital fund, a $50 million investment vehicle established as a Singapore-domiciled Variable Capital Company managed by Conduit Asset Management Pte. Ltd., a firm licensed and regulated by the Monetary Authority of Singapore. The fund will support early-stage blockchain companies developing infrastructure and real-world applications that accelerate mainstream Web3 adoption. Singapore's regulated investment framework provides institutional investors with governance oversight as the country continues to serve as a regional hub for digital asset innovation.
Fund Targets Pre-Seed and Seed-Stage Blockchain Infrastructure Companies
The fund will invest in pre-seed and seed-stage startups building blockchain infrastructure and expanding the technology's use across the real economy. Target investment areas include infrastructure, middleware, trade finance, tokenized real-world assets, stablecoins, decentralized finance, and consumer-facing applications.
The investment strategy emphasizes businesses integrating blockchain technology into traditional digital services rather than focusing solely on cryptocurrency-native products. Tim Enneking, Managing Partner of Psalion, said the firm's investment thesis had evolved beyond viewing cryptocurrency as an isolated sector. He indicated that the company now sees the greatest opportunity in businesses that combine traditional Web2 applications with Web3 infrastructure, allowing conventional digital platforms to operate using blockchain technology behind the scenes.
Psalion focuses on digital asset venture capital, yield strategies, and digital asset lending, serving institutional investors, family offices, corporate treasuries, asset allocators, and other sophisticated market participants seeking exposure to blockchain-related opportunities through risk-managed investment strategies.
Psalion Continues Counter-Cyclical Investment Strategy During Market Downturns
The fund continues a pattern established by Psalion's previous venture funds, both of which were launched during periods of weaker market conditions. The company maintains its counter-cyclical investment strategy by identifying promising startups when industry valuations are comparatively lower.
Enneking indicated that challenging market environments often present more attractive investment opportunities because company valuations become more reasonable and entrepreneurs tend to concentrate on building sustainable businesses instead of pursuing short-term market momentum. He also suggested that founders launching projects during downturns are generally more committed to long-term development and innovation.
By maintaining investment activity during less favorable market cycles, Psalion aims to identify emerging blockchain companies before broader market recovery increases competition for venture capital funding. The firm believes that disciplined investment during these periods can generate stronger long-term opportunities while supporting entrepreneurs focused on delivering practical blockchain solutions.
Singapore Variable Capital Company Structure Provides Regulatory Oversight for Institutional Investors
The fund's structure as a Singapore Variable Capital Company reflects the country's growing role as a regional hub for digital asset investment and regulated financial innovation. Management through a Monetary Authority of Singapore-regulated asset manager provides institutional investors with an additional layer of governance and regulatory oversight.
The launch underscores continued investor interest in blockchain infrastructure despite evolving market conditions. As tokenization, decentralized finance, and digital asset applications continue expanding into traditional industries, venture firms are directing capital toward technologies that integrate blockchain into everyday financial and commercial operations rather than limiting investments to cryptocurrency-focused businesses alone.
FAQ
What did Psalion launch and how much is the fund?
Psalion launched its third venture capital fund, a $50 million investment vehicle established as a Singapore-domiciled Variable Capital Company managed by Conduit Asset Management Pte. Ltd., which is licensed and regulated by the Monetary Authority of Singapore.
What types of blockchain companies will Psalion's new fund invest in?
The fund will invest in pre-seed and seed-stage startups building blockchain infrastructure and expanding the technology's use across the real economy, with target areas including infrastructure, middleware, trade finance, tokenized real-world assets, stablecoins, decentralized finance, and consumer-facing applications.
Why does Psalion launch venture funds during market downturns?
Psalion maintains a counter-cyclical investment strategy by identifying promising startups when industry valuations are comparatively lower. Managing Partner Tim Enneking indicated that challenging market environments often present more attractive investment opportunities because company valuations become more reasonable and entrepreneurs tend to concentrate on building sustainable businesses instead of pursuing short-term market momentum.
