Quick take:
- Re7 Capital said the fund targets teams with high conviction and focus, with additional capital reserved for follow-on support.
- The fund is anchored by Re7 Capital with further support coming from Lens, Farcaster Founder Dan Romero, and existing Re7 Capital limited partners.
- Luc de Leyritz, general partner of SocialFi at Re7 Capital starting with a small fund size “keeps incentives on carry, not fees, forces discipline.”
Re7 Capital has launched a $10 million new fund to invest in early-stage SocialFi startups. SocialFi is a segment of dApps that focuses on blending web3 elements with social media. The sector has failed to keep up with other segments of the industry like real-world asset tokenisation and stablecoins in terms of adoption.
However, Luc de Leyritz believes things are about to change stating that “the timing is right: infrastructure, talent, and user behaviour are finally aligned,” The Block reported.
According to the announcement, Re7 Capital plans to cut checks of about $100,000 to $300,000 to support 25-30 early-stage SocialFi startups. The company is targeting teams with high conviction and focus, with additional capital reserved for follow-on support.
Re7 Capital anchored the fund with further support coming from Lens, Farcaster Founder Dan Romero, and existing Re7 Capital limited partners. Both Lens and Farcaster are SocialFu platforms.
Explaining why the firm chose to start with a relatively small fund, Leyritz said it “keeps incentives on carry, not fees, forces discipline.” “This venture sleeve is a high-conviction scout vehicle, not an AUM vanity play. If the thesis proves out, we’ll scale the next vintage.”
Despite the relatively slow penetration compared to other crypto categories, Leyritz believes that SocialFi is “the most important category” in crypto investing right now, whilst acknowledging not everyone sees the sector the same way.
Although the full $10 million has not yet been raised, the fund has already booked 60% in commitments, mainly from Re7 Capital and its partners. Leyritz expects it to close by the end of summer, also adding the top ceiling may be stretched slightly.
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