Equilibrium Ventures (EQV), a nascent seed-stage crypto fund anchored in Finland, has marked the initial close of its ambitious €30 million fund, fueled by a resurgence of interest in blockchain enterprises. The fund has already secured commitments amounting to 20% — approximately €6 million — from limited partners.

In the wake of a protracted crypto winter, which witnessed a precipitous drop in VC investment from $21.2 billion in 2022 to a mere $4.1 billion in 2023, regulatory shifts in the US and Europe this year are poised to bolster investor confidence in the crypto domain.

Equilibrium Ventures aims to capitalize on this potential resurgence, positioning itself within Europe’s burgeoning yet modest crypto venture ecosystem.

Although the fund’s size pales in comparison to the colossal sums allocated by US investors to crypto, there have been notable developments from Europe-centric crypto VCs.

1kx, a venture firm backing crypto startups such as Paris-based Kiln and London’s Qredo, closed a $75 million fund in March. Similarly, Danish VC fund Heartcore concluded €15 million of a targeted €20 million fund towards the end of last year, aimed at investing in protocols and tokens.

Prominent European funds in this sector also include Berlin’s Greenfield Capital, London’s Fabric Ventures, and Cherry Ventures’ crypto fund.

Equilibrium Ventures plans to distinguish itself through its team’s profound technical acumen, aiming to attract founders seeking investors well-versed in intricate concepts such as zero-knowledge proofs and smart contracts.

The fund is an offshoot of its Helsinki-based parent company, renowned in developer circles for creating open-source projects for blockchain networks like Solana and Starknet. The parent company has historically supported some of its partnered companies using its own resources, and this new VC fund aims to formalize these investments by incorporating external investors.

“We perceive a significant opportunity to support founders in Europe — a somewhat underserved market,” remarks partner Mika Honkasalo. “Despite not being our sole focus, our background as a European engineering firm offers a distinct advantage.”

Technical Proficiency at the Forefront

Joining Honkasalo is Henrik Sundvik, formerly of Bain & Company’s private equity practice, and ex-Molten Ventures investor Christopher Ahn. The broader team encompasses around 70 blockchain engineers, predominantly based in Europe, thanks to the Finnish headquarters.

The venture fund asserts that its engineering expertise provides a competitive edge in identifying promising deals within the crypto infrastructure sphere, which will be their primary focus.

“We are likely one of the few funds capable of conducting rigorous technical due diligence, crucial for the industry’s long-term viability,” says Ahn. “Additionally, we provide substantial value beyond funding. If you’re an early-stage engineering company, we can actually help you build.”

Ahn and Honkasalo note that limited partners also seek Equilibrium’s technical insights on prospective crypto investments. Alongside strategic investors and family offices, notable LPs include Sebastien Borget, co-founder of the metaverse platform The Sandbox and a prolific angel investor in Europe’s crypto sector.

The team anticipates reaching 80% of the fund’s target by the end of this summer, marking a significant milestone in their venture.

Equilibrium Ventures stands at the threshold of a transformative journey, melding deep technical expertise with strategic investments to foster innovation in the European crypto landscape.