Brazil-based Fuse Capital has commenced fundraising for Fuse Capital Fund II, which will focus on investments in Web3 startups in Latin America. The goal is to raise $50 million in total.
Fuse Capital Fund II will be aimed at companies solving traditional world problems, still dominated by Web2, while using technologies embedded in the Web3 framework, such as blockchain, DeFi (Decentralised Finance), stablecoins and NFTs. The solutions can be aimed at diverse sectors, from open finance to health, infrastructure, e-commerce and insurance, among others. Another differential of the fund will be its term of five years, it is a premise that the invested companies issue tokens within this period, allowing the divestment to be made from the sale of these tokens. The contributions will be around $1 million.
Fuse Capital Fund I has already invested in more than ten startups in the global ecosystem in various sectors, such as healthtech, AI, edtech, fintechs, blockchain and crypto. A relevant part of these investments, however, brought Fuse closer to the concept of Web 3, making the manager see the potential of this still incipient market. Examples of investments already made by the manager in this sense, still in the first fund, are Hashdex, the largest cryptocurrency manager in Latin America; Arthur Mining, a Bitcoin ESG miner that uses flare gas as its energy source; Illios, responsible for expanding the Helium network in Brazil; and Credix, which gives credit fintechs access to the global market through the Web3.
