Blockchain venture firm CoinFund has launched a new investment fund devoted to Web3 and other crypto-focused startups, opening the door to fresh funding opportunities for entrepreneurs during the bear market. 

The newly launched CoinFund Ventures I will invest $300 million into early-stage companies at the intersection of Web3, cryptocurrency and other blockchain sub-sectors, the company announced Wednesday. The new fund was financed by a combination of institutional investors, family offices and cryptocurrency entrepreneurs. 

CoinFund Ventures I is more than three times bigger than the firm’s 2021 crypto startup fund, which was valued at $83 million. CoinFund was an investor in the nonfungible token marketplace Rarible and Solana Labs’ $314 million private token sale. The company disclosed Wednesday that several of its seed-stage portfolio companies are preparing to raise Series A funding but didn’t disclose any names.

New crypto projects often depend on Venture Capital firms to help them get off the ground.

The real question is, are VCs in it for the community and fundamentals, or for their own benefit?

(Via @CointelegraphZN)https://t.co/92Gjt4ZlRI

— Cointelegraph (@Cointelegraph) July 8, 2022

CoinFund said its new investment vehicle reflects its belief that Web3 marks the “architectural transition” for the new internet. Although definitions vary, Web3 generally refers to the next iteration of the internet, powered by blockchain technology and tokenized assets.

Related: VC Roundup: Lightning Network payment rail, DeFi trading platform and blockchain security firm raise millions

Web3 projects have received significant backing from the venture capital community. In the second quarter of 2022, these startups represented around 42% of individual funding deals in the crypto sector, according to Cointelegraph Research. Despite this backing, Web3 ecosystems are still in their very nascent stages and many projects haven’t been built for utility, according to Raymond Liao, a managing director at Samsung Next.