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filippoweb3 authored Oct 17, 2024
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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.

The main funds include:
applications aiming to use the Polkadot Tech Stack:

- [Scytale Digital](https://www.scytale.digital/)
- [Harbour Industrial Capital](https://www.harbourindustrial.com/)

## Scytale Digital

[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.

## Harbour Industrial Capital

Expand All @@ -35,49 +32,23 @@ managed by [Max Rebol](https://www.linkedin.com/in/maxrebol/) and
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.

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.

HIC Fund II will pursue the main deployment strategies below.

### VC Strategy

- **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

- **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

- **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

### Liquid Strategy

- **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.

- **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.

- **[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.

### Contact for Prospective LPs

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.

### Contact for Projects

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.

## Legal Disclaimer

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.

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.

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