Venom Foundation, a Layer 1 blockchain solution, and Iceberg Capital, an investment management firm from the Abu Dhabi Global Market (ADGM), have teamed up to create a fund in which they would invest $1 billion in Web3 and blockchain companies.

Web3 protocols and decentralized applications (DApps) in the areas of payments, asset management, decentralized finance (DeFi) and gaming finance (GameFi) will be targeted investments for the Venom Ventures Fund (VVF), it announced on Jan. 11.

Iceberg Capital plans to use its established connections to provide incubation services, presentations to relevant parties in the business, promotion, listing, and guidance on laws, technology and regulations, the two firms stated in a press release.

Iceberg Capital will manage the $1 billion fund

The fund will be managed by Iceberg Capital and will invest in businesses and projects from the pre-seed stage to the Series A investment stages. The ultimate goal of the collaboration is to accelerate the pace at which companies create blockchain services and products, DeFi and Web3.

Former BlackRock CIO and former global fixed income CIO at Barclays Global Investors Peter Knez, president of Venom Ventures, said the Venom Foundation had seeded the fund, the company’s founders, and regional private and institutional investors. Furthermore, the fund is not limited to Abu Dhabi companies, but will also support global organizations and initiatives.

According to its website, the fund’s mission is to be where “old money meets new.” The VVF group has extensive experience in the areas of fundraising and business development, having supported the expansion of Web3 and conventional funds and serving as a source of growth capital for both start-ups and growth companies.

While the fund was being announced, VVF also led a $20 million fundraising round for Nümi Metaverses, a company focused on creating virtual worlds in the metaverse.

Interestingly, this fund is one of the few big funds emerging in this category right now, which is particularly notable given the current bear market. While it appeared that new billion-dollar-plus funds were being established at a steady pace during the previous bull run, that trend has since slowed.