A group of cryptocurrency venture capitalists have established a $20 million fund to invest in undervalued Web3 projects and blockchain gaming and digital collectibles focused companies.

The CEO and founder of Alpha Protocol Ventures (APV), Vagelis Diamantis, stated in an email interview that the company intends to invest in a variety of Web3 ecosystem initiatives.

He stated that gaming and collectibles will be the fund’s primary focus, while decentralized finance and layer-1 and layer-2 protocols will also be covered by the fund’s capital allocation.

APV has received funding from Diamantis, Nick Rose, CEO of Ethernity, the Web3 investment firm Morningstar Ventures, and a cohort of angel investors from Web3.

Diamantis, the former chief financial officer of Ethernity, stated that APV had identified several potential investment targets and that it would also provide support to“undervalued projects” that were launched as“buy-and-hold funds,” such as Polygon, Polkastarter, Axie Infinity, and Ethernity.

A protracted bear market, according to Diamantis, still affords investors the chance to back infant blockchain-based innovation projects. Diamantis stated that APV would increase its foon blockchain companies and Web3 applications, concentrating on undervalued companies and undiscovered blockchain technologies.

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Through 2023, venture capitalists and fund managers have continued to invest significantly in Web3 platforms and initiatives.

In July 2023, Animoca Brands announced that it would invest $30 million in Web3 Neobank Hi, with founder Yat Siu highlighting innovative products such as its customizable nonfungible token-styled crypto debit card as a possible attraction for Web3 enthusiasts.

In the meantime, another venture capital firm, Vessel Capital, has announced a $55 million fund that will similarly seek to support Web3 infrastructure and applications.

This figure was surpassed by the cryptocurrency exchange Bitget, which reportedly unveiled a $100 million fund aimed at Web3 and blockchain initiatives in Asia.