London has established itself as one of the top global hubs for financial innovation and technological development. It should come as no surprise that the city is also leading the way in nurturing the growth of the web3 and cryptocurrency ecosystems. Venture capitalists play a crucial role in supporting promising startups that are building the foundations of this new digital landscape.
This in-depth guide profiles 7 of the most active and influential London-based venture capital firms investing in web3 and crypto-related projects. With a combined portfolio of hundreds of companies and over a billion dollars worth of assets under management, these VCs are some of the top players supporting the next wave of disruptive technologies. Whether you're seeking funding for your early-stage startup or aiming to build strategic partnerships, exploring opportunities with these firms is highly recommended.
1. Outlier Ventures
Outlier Ventures was founded in 2014 and is considered one of the pioneering crypto venture capital funds. Based in London, they have raised over $100 million across multiple funds to invest in visionary teams at the forefront of web3 innovation.
Their investment scope goes beyond traditional crypto/blockchain applications, focusing on integrating emerging technologies like AI, VR and decentralized infrastructure to advance the open metaverse. Notable investments include Polkadot, Brave Browser, Chainlink and IOTA.
Outlier Ventures also runs the prestigious Outlier Ventures Base Camp accelerator program. Selected companies gain access to mentoring from industry experts, networking opportunities, and a $100k seed investment. Both institutional and individual investors can participate in their funds.
Contact:
- Email: contact@outlierventures.io
- Website: https://outlierventures.io
2. Fabric Ventures
Founded in 2017, Fabric Ventures has backed over 50 companies from its offices in London and Luxembourg. They invest in technologies that power the evolution of the web, focusing on blockchain, crypto infrastructure and decentralized applications.
Noteworthy portfolio investments include crypto exchange 1inch, NFT platform Sorare, and interoperability protocol Polkadot. Fabric Ventures sees potential at the seed venture stage and provides hands-on support to help startups scale.
Investment sizes range from $500k to $2 million. In addition to funding, portfolio founders gain access to Fabric Ventures' extensive network of mentors, customers and other investors. The team combines traditional venture experience with native web3 expertise.
Contact:
- Email: info@fabric.vc
- Website: https://fabric.vc
3. Metaverse Venture Capital
A subsidiary of Decentralized Investment Group (DIG), Metaverse Venture Capital (MVC) exclusively invests in companies building products and services for the Decentraland virtual world.
Beyond just funding, MVC helps portfolio founders integrate with the fast-growing Decentraland ecosystem. Notable investments include gaming platform Decentral Games, virtual real estate company Vegas City, and digital art platform Artie.
MVC welcomes early-stage projects aligned with Decentraland's vision of an open and decentralized metaverse. Founders benefit greatly from MVC's strong synergies with its parent organization DIG, the primary investor behind Decentraland.
Contact:
- Email: hello@metaverseventures.co
- Website: https://metaverseventures.co/
4. Monoceros Ventures
Monoceros Ventures supports early-stage crypto infrastructure projects and protocols. Based in London, they have invested in over 20 startups since 2021 across seed and pre-seed rounds.
The team includes experienced blockchain engineers who provide hands-on technical guidance to portfolio founders. Investment sizes average between $100k to $500k, allowing very early-stage projects to test concepts.
Monoceros Ventures vets founders thoroughly to assess the viability of their tech visions. Their portfolio prominently features fundamental web3 building blocks like consensus algorithms, storage solutions and decentralized identity protocols.
Contact:
- Email: carlos@monoceros.com
- Website: https://www.monoceros.com/
5. Rarestone Capital
Rarestone Capital is a London-based fund focused on early-stage ventures in private and public crypto markets. They employ a collaborative approach, partnering closely with founders through every stage.
The versatile team combines skills in growth hacking, product management, research and business development. Investment sizes range from $25k to $150k depending on project maturity.
Rarestone Capital favors founders tackling large problems through innovative tech stacks. Their diverse portfolio covers marketplaces, DeFi protocols, mining infrastructure and analytics platforms. Extensive research also informs their public token portfolio positions.
Contact: Website contact form at https://rarestonecapital.com
6. Digital Horizon
Digital Horizon is a newergeneration venture capital firm that bridges web2 and web3 startups. Operating globally from London, Dubai and Tel Aviv, they apply a stage-agnostic strategy to minimize risk and maximize returns through each venture stage.
Notable Digital Horizon investments include DeFi platform SteadyPay and cloud technology startup Hour One. They assemble diverse entrepreneurial teams tailored for long-term global growth. Portfolio support extends far beyond funding.
The Digital Horizon ecosystem fosters innovation through sharing knowledge between portfolio founders. An internal venture builder also incubates new ventures from ideation stage. Assets under management exceed $300 million.
Contact:
- Email: hello@digitalhorizon.vc
- Website: https://www.digitalhorizon.com
7. Moonrock Capital
Moonrock Capital is a London-based crypto venture studio focused on incubating and accelerating early-stage projects. Since 2019, they have supported over 30 startups working on infrastructure, middleware, DeFi applications and more.
Beyond just capital, Moonrock provides hands-on expertise to founders through dedicated programs and workshops. Their accelerator assists with business development, marketing and technical mentoring. Success is measured by network effects and real-world adoption, not hype cycles.
Notable portfolio assets have included Polkastarter's initial decentralized exchange offering, blockchain analytics platform Nansen and infrastructure provider Manta Network. Projects gain exposure to Moonrock's global network of investors and partners.
Contact:
- Email: contact@moonrockcapital.io
- Website: https://moonrockcapital.io
London is fortunate to host many accomplished venture capital firms actively nurturing the growth of innovative web3 and blockchain businesses. Outlier Ventures, Fabric Ventures, Digital Horizon, Rarestone Capital and others are excellent potential allies for founders seeking strategic guidance, resources and funding to develop world-changing technologies. Proper engagement with these top VCs can help visionary projects achieve great success.
Conclusion
The future of computing is being built on decentralized architectures powered by cryptocurrencies, NFTs, decentralized applications and new internet governance models. London's vibrant startup ecosystem and concentration of financial expertise makes it an ideal breeding ground for the visionaries pioneering this new digital frontier.
The venture capital funds profiled here represent some of the top allies for founders working on the technologies of tomorrow. With their extensive networks, experience investing across stages and dedicated project support, engaging the right London-based VC early can be instrumental to gaining traction and realizing your startup's full potential.
Whether you're working on innovative uses of blockchain, advancing open metaverse infrastructure or building the foundations of a more fair economic internet, exploring partnerships with these firms may open important doors to capital and industry connections. Success in the high-risk world of cryptocurrency innovation demands partnerships with visionary allies - the top London VCs can certainly play that role.
FAQs
1. What stage companies do these VCs typically invest in?
The funds cater to different maturity levels but generally focus on seed to Series A rounds. Outlier Ventures, Fabric Ventures and Digital Horizon frequently back very early stage firms. Rarestone Capital, Monoceros Ventures support pre-seed and seed. Metaverse Venture Capital exclusively invests in Decentraland ecosystem projects. Moonrock Capital and Digital Horizon also operate venture studios and accelerators.
2. What investment sizes can founders expect?
This varies per VC and project maturity. Most seed rounds range $100k-$500k. Series A deals with Outlier, Fabric are $1-$3 million. Digital Horizon/Metaverse VC rounds exceed $10 million. Rarestone Capital provides $25k-$150k depending on stage. Moonrock Capital seed checks are $100k. Founders should inquire with each fund regarding typical investment sizes.
3. How does the application process work?
A: Most VCs accept pitches and applications online via a submission form on their websites. This allows an initial screening of ideas before inviting select founders for follow-up calls or meetings. Standout projects may be scouted directly by VCs as well. It's best to craft a compelling executive summary and pitch deck highlighting the problem, solution, market and your differentiated team.
4. Do these firms accept non-UK based startups?
While they're based in London, many of these VCs consider global opportunities, especially if the projects align well with their focus areas. Having a UK or European presence may be preferable but is not always necessary, especially if targeting certain international markets. It's best to check each firm's website or inquire directly about any geographic limitations.
