Early-stage SocialFi ventures receive $10 million investment from Re7 Capital's recent fund.
Re7 Capital, a leading investment firm, has announced the launch of a new $10 million fund dedicated to early-stage SocialFi startups. The fund, which is still in the process of raising its target, has already secured 60% in commitments.
Luc de Leyritz, general partner of SocialFi at Re7 Capital, believes that the SocialFi category, although relatively slow in penetration compared to other crypto categories, is "the most important category" in crypto investing currently. De Leyritz, who is anchoring the fund alongside Re7 Capital itself, Lens, Farcaster Founder Dan Romero, and existing Re7 Capital limited partners, anticipates the fund to close by the end of summer.
The Re7 Capital SocialFi fund aims to capitalize on the growing trend of blending web3 elements with social media. The key investment strategies and goals of this fund include supporting SocialFi projects, driving innovation, building ecosystems, long-term value creation, diversification, and focusing on sustainable growth.
Re7 Capital plans to cut checks of about $100,000 to $300,000 to support 25-30 early-stage SocialFi startups. The fund targets teams with high conviction and focus, with additional capital reserved for follow-on support. If the thesis proves out, Re7 Capital plans to scale the next vintage.
The fund's approach is not an AUM vanity play, according to Luc de Leyritz. Starting with a small fund size keeps incentives on carry, not fees, and forces discipline. The potential top ceiling of the fund might be slightly higher than the initial $10 million, assuming the top ceiling is stretched.
Not everyone shares the same view on the importance of the SocialFi sector. However, de Leyritz believes that the timing is right for SocialFi startups, as infrastructure, talent, and user behavior are finally aligned. The fund is focused on strategic investments in the SocialFi sector, which combines social media and decentralized finance (DeFi).
The fund will back innovative projects that integrate social networking with financial incentives, such as creator tokens, NFT-based communities, and decentralized social apps. It will also help portfolio companies scale by leveraging Re7 Capital’s network to foster community growth, user engagement, and cross-platform collaboration.
In summary, Re7 Capital aims to foster innovation and community-driven growth in the SocialFi sector by investing in projects that blend social engagement with decentralized financial features. The fund's closure is expected by the end of summer, and it is progressing towards its goal of raising $10 million.
The Re7 Capital SocialFi fund, which is focused on strategic investments in the SocialFi sector, aims to capitalize on the growing trend of blending web3 elements with finance and investing in projects that combine social media and decentralized finance (DeFi). De Leyritz, the general partner of SocialFi at Re7 Capital, envisions the fund driving innovation and supporting SocialFi startups, with plans to back projects integrating social networking with financial incentives.
