Deal Box, a capital markets advisory and token offering packaging platform, has launched its venture arm with plans to invest $125 million in startups using web3 technology, the company shared on Wednesday.

“We believe in the transformative power of web3, and we plan to invest in both web3 startups and companies that use web3 technology, including blockchain, to impact and reshape people’s everyday lives,” he told TechCrunch. Thomas Carter, CEO of Deal Box.

Deal Box was founded in 2005 and has more than $200 million in total deal flow with more than 500 packaged customers, according to its website. It has partnered with companies focused on digital assets and investments such as Tezos, Vertalo, tZERO, Texture Capital, Fundopolis, and Resolute Capital Partners, to name a few.

The venture arm, Deal Box Ventures, will focus on startups across five fund areas: Emerging Growth, Real Estate, Fintech, Social Impact, and what it calls “FunTech,” which will focus on “Action Sports, Innovative Leisure, and experiential consumer products that change”. the way we rest and play,” the company stated.

“On the FunTech side, we know that football, soccer and basketball teams have become giants in terms of team valuations,” Carter said. “There are a lot of consolidation opportunities in action sports and the potential is quite large. It is an extraordinary time for these action sports categories as they become more institutionalized and recognized.”

For the fintech category, AI and blockchain will be the fastest path to business value creation, Carter added.

Each fund has a total of $25 million, and the sum of the five funds is $125 million, Carter said. “This will be an achievable goal to raise per fund, and we’ll have bigger fundraisers afterward.” This amount is “the best basis for achieving the results that we want to achieve in the next three to five years,” Carter added.

Deal Box has taken strategic institutional funding from family offices and high net worth and ultra high net worth individuals, Carter shared. There has also been interest from institutional investors, other family offices and sovereign wealth funds, Carter added. “So far, we have raised just under $5 million and have circulated close to $40 million.”

The firm has closed initial strategic investments in three startups: Total Network Services, Rypplzz and Forward-Edge AI, as part of its web3 investment thesis.

The resilience of web3 companies that can survive the recent downturn should be an indicator that they are “doing something meaningful that fills a real need in the marketplace and hopefully good decision making,” Carter said. Many projects in the web3 space were speculative, but Deal Box hopes to show investors and founders alike that blockchain and web3 technology can be used while “still playing within the bounds” of the US Securities and Exchange Commission. .

“There has never been a time for technology to have a greater impact on innovation and on people’s daily lives,” said Carter. “This is the beginning of a new wave. We are witnessing the rise of the fourth industrial revolution.”