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The Polkadot has Ecosystem Development Funds aiming to support the development of parachains and | ||
applications aiming to use the Polkadot Tech Stack. | ||
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The main funds include: | ||
applications aiming to use the Polkadot Tech Stack: | ||
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- [Scytale Digital](https://www.scytale.digital/) | ||
- [Harbour Industrial Capital](https://www.harbourindustrial.com/) | ||
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## Scytale Digital | ||
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[The Polkadot Ecosystem Fund](https://www.scytale.digital/blog-posts/scytale-polkadot-ecosystem-fund) | ||
by Scytale and the Web3 Foundation is a venture initiative focused on strategically investing in and | ||
supporting projects within the Polkadot and Kusama ecosystems. With over USD 75 million in assets | ||
under management, Scytale has built a strong portfolio of over 20 projects spanning three | ||
continents. The fund provides early-stage ventures with mentorship, liquidity, and access to a | ||
network of strategic partners. Through its rigorous due diligence process, it selects only the most | ||
promising projects. The fund’s value proposition includes offering technical advisory, KPI, and OKR | ||
oversight, and fostering active ecosystem participation, ensuring sustainable growth for its | ||
portfolio companies. | ||
by Scytale is going to be a venture initiative focused on strategically investing in and supporting | ||
projects within the Polkadot and Kusama ecosystems. With over USD 75 million in assets under | ||
management, Scytale has built a portfolio of over 20 projects spanning three continents. The fund | ||
will provide early-stage ventures with mentorship, liquidity, and access to a network of strategic | ||
partners. Through its rigorous due diligence process, it selects only the most promising projects. | ||
The fund’s value proposition includes offering technical advisory, KPI, and OKR oversight, and | ||
fostering active ecosystem participation, ensuring sustainable growth for its portfolio companies. | ||
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## Harbour Industrial Capital | ||
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held its final closing at the end of 2023, and, as of 2024, reached an AUM of ~US$10m. LPs are | ||
primarily family offices and institutional investors from Asia, Europe, and the Middle East. | ||
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With the [JAM upgrade](../learn/learn-jam-chain.md) on Polkadot expected to go live soon, HIC | ||
launched a second fund in Q3 2024. This new HIC Fund II will have a target size of US$100m and is | ||
expected to start operations in early 2025. LPs are primarily family offices and institutional | ||
investors looking to build strategic partnerships in the Polkadot ecosystem. | ||
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HIC Fund II will pursue the main deployment strategies below. | ||
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### VC Strategy | ||
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- **Pre-Seed/Seed Round:** Some of the highest returns can be achieved by supporting great teams | ||
leveraging superior technology at an early stage. HIC has the best pipeline for deals and actively | ||
works with founders as they build out new products | ||
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- **Co-investments:** As a major investor in the Polkadot space, HIC is in a good position to lead | ||
rounds while inviting external VCs to co-invest. HIC also actively supports its portfolio | ||
companies in their follow-on rounds by introducing them to other investors | ||
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- **Strategic Investments:** Polkadot has best-in-class technology, and HIC actively brings | ||
established companies with a large user base to Polkadot. Integration into the network will | ||
accelerate their growth while also contributing to the growth of the Polkadot network itself | ||
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### Liquid Strategy | ||
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- **Validators and Staking:** As early VC investors in many Polkadot-based projects, HIC can help | ||
launch validators or collators for projects using our seed tokens. The fund won’t operate the | ||
physical hardware itself but delegate it to trusted operators with whom it shares revenue. | ||
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- **Liquidity Pools:** Holding both project tokens and DOT, HIC is in a good position to act as | ||
liquidity providers at Automated Market Makers (AMM). Resulting LP tokens will also be used in | ||
DeFi to maximize returns while actively monitoring leverage and risk levels. | ||
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- **[Coretime](../learn/learn-agile-coretime.md) Brokerage:** HIC has been at the forefront of | ||
parachain auctions with Fund I. As the model of blockspace allocation transitions to core time, | ||
Fund II will run a brokerage model on coretime trading platforms. This is still a nascent market, | ||
so the strategy will start slowly and grow over time. | ||
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### Contact for Prospective LPs | ||
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Investors looking for actively managed exposure to the Polkadot ecosystem through HIC Fund II can | ||
now contact [email protected]. LPs must meet professional/ accredited investor criteria. | ||
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### Contact for Projects | ||
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Projects building on Polkadot that want to raise investment from HIC can contact | ||
[email protected]. Please note that projects building in different ecosystems will be | ||
outside HIC’s investment scope. | ||
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## Legal Disclaimer | ||
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The information provided herein is for informational purposes only and should not be construed as an | ||
endorsement, recommendation, or advice regarding any specific products, services, or investment | ||
funds. Web 3.0 Technologies Foundation (“W3F”) does not make any representations or warranties, | ||
either express or implied, regarding the suitability, performance, or potential outcomes of any | ||
products referenced. | ||
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Nothing contained in this communication constitutes financial, legal, or investment advice, nor does | ||
it take into account your specific objectives, financial situation, or needs. Decisions based on the | ||
information provided are your responsibility, and W3F strongly advises that you seek professional | ||
advice from licensed financial, legal, or other relevant experts before making any decisions. W3F | ||
disclaims any liability for any loss or damage that may arise from your reliance on the information | ||
provided. |