Crypto venture capital firm Variant has raised $222 million in a new fund, planning to continue investing in early-stage projects and expanding its focus from early Web3 narratives to “autonomous” applications combining AI and crypto. Founder Jesse Walden stated that in the coming years, “crypto investing” will gradually become part of a broader range of internet and software investments.
The new fund is shifting towards the intersection of AI and crypto.
In an interview with Fortune, Walden said that Variant still endorses the investment logic established by its previous funds around blockchain and decentralization, but the industry environment has changed, and the rapid development of AI has prompted the institution to adjust its direction. The new fund will continue to invest in the earliest-stage companies and provide ongoing support throughout the project's growth phase.
His new core concept is "autonomy." According to him, this direction includes not only permissionless financial applications and crypto products, but also AI applications that give users more control. Compared to the past emphasis on the "Web3" concept, Variant is now defining its investment scope more broadly.
Web3 narrative cools down, DeFi is still seen as an achievement.
Walden argues that early predictions that Web3 would reshape the internet have not materialized. Ordinary users continue to face complex encrypted product experiences, and the dominance of large platforms like Google and Meta has not been significantly weakened.
However, he stated that the decentralized concept is not without its merits, especially in the financial sector. He considers Uniswap and Morpho, both in Variant's portfolio, to be representative examples. In his judgment, these projects demonstrate that blockchain is better suited as underlying financial infrastructure rather than as a single consumer product directly accessible to the general public.
- New fund size: US$222 million
- Investment stage: Primarily the earliest stage projects
- Representative holdings: Uniswap, Morpho
Blockchain is more like the underlying track.
Walden stated that a major problem in the crypto industry over the past few years has been that the outside world often treats crypto technology itself as the final product, when in reality it is closer to the "underlying pipeline" or transaction track. As more financial activity migrates on-chain, the growth potential of this type of infrastructure is only just beginning to be realized.
He also mentioned that the long-standing experience of crypto entrepreneurs in compliance, security, and attack-resistant systems may become even more valuable in the AI era. This is because businesses will need to handle more blockchain-based payment and settlement processes in the future, and will also need talent capable of dealing with security risks and regulatory pressures.
The AI era may lead to a reassessment of the value of open networks.
Walden believes that AI agents are increasingly involved in communication between businesses and their customers, partners, and suppliers. In this environment, platforms' practice of maintaining control by blocking data interfaces may be less effective than in the past, as AI systems will turn to easier-to-access alternative channels.
In his view, this means that the concepts of open networks and user control may regain practical demand in the AI era. For Variant, this is also the main reason for expanding its investment themes from the single crypto sector to the intersection of AI and crypto.
