Tykhe Block Ventures Completes Initial Close of $30 Million Blockchain Growth Fund, Allocates 25% to MENA Region

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Tykhe Block Ventures, a venture capital firm based in the USA, has declared the initial closing of its Blockchain Growth Fund. This first closing was spearheaded by a group of ultra-high-net-worth individuals and family offices from South-East Asia and the Middle East. The firm has also pledged that around $10 million of the fund will be directed towards investments in blockchain and Web3 startups within the Middle East. Additionally, Tykhe is in the process of establishing its office in Dubai and plans to launch a $100 million fund later this year.

Tykhe Block Ventures was founded in 2021 by Prashant Malik, a prominent investor in South-East Asia (an early backer of several unicorns such as Urbanclap, Shadowfax, OfBusiness, and Coinswitch) and is widely acknowledged as the creator of Apache Cassandra – the distributed database utilized by a majority of technology companies worldwide. Prashant developed Cassandra while working at Facebook as one of its earliest employees, which was subsequently open-sourced as Apache Cassandra.

“My enthusiasm for the blockchain sector began in 2016, as it shared many similarities with Cassandra, which is a peer-to-peer masterless database operating on a voting mechanism akin to blockchain. In 2021, along with my partners, we initiated a pilot blockchain fund that performed quite well. This success instilled in us the confidence to launch the $30 million Blockchain Growth Fund. Despite the market’s softness, we have observed significant interest from investors who believe that blockchain will become the next major narrative in technology, similar to how social media was when I began developing Facebook,” stated Prashant.

As sponsors, Prashant and other investment partners have invested $5 million into the fund. The fund managers collectively possess over 30 years of core blockchain investment experience, having invested in more than 80 companies.

“Exceptional teams operating in the blockchain sector approach us not only for venture capital but also for relationship capital. Drawing from my experience with Cassandra, I can assist them in establishing a scalable and secure architecture for distributed ledger technology (DLT),” Prashant remarked. Recent investments made through the Blockchain Growth Fund include Trust Machines, Fan Tiger, DWallet Labs (Odsy Network), NFTPerp, and Convrse.

The blockchain sector has recently faced challenges due to the collapse of companies like Celsius and FTX, alongside a significant correction in cryptocurrency prices. Nevertheless, Tykhe perceives these events as a necessary and beneficial adjustment. “All the entities that failed were centralized organizations and do not align with the principles of blockchain technology – which advocates for decentralization. Thanks to our investment thesis focused on purely decentralized networks, our portfolio companies have performed relatively well, despite the global downturn. In fact, we are likely one of the few funds in our domain that has achieved high-double-digit returns over the past year – while others have experienced a substantial correction,” commented Ganesh, who leads the investment team.

The global Web3 market was valued at $3.2 billion in 2021 and is projected to grow at a CAGR of 43.7%, reaching $81.5 billion by 2030, according to Emergen Research published in June 2022. The Middle East, particularly Dubai, hosts numerous blockchain and cryptocurrency startups and exchanges, establishing it as a natural hub for the industry.

About Company

Tykhe Block Ventures is a prominent investment firm located in the United States, focusing on early-stage ventures in the blockchain field. The company aims to invest in innovative Web3 startups that leverage distributed ledger technology, digital assets, and their essential supporting infrastructure. By collaborating with startups in these sectors, Tykhe Block Ventures seeks to seize the billion-dollar opportunities anticipated by industry leaders such as Gartner, BCG, and Goldman Sachs in the forthcoming years.

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