Former Chorus One CIO Launches $20 Million Crypto Fund

Xavier Meegan, the former Chief Investment Officer of Chorus One, has launched a $20 million crypto native pre-seed fund. Meegan now serves as a General Partner at Frachtis, an investment and advisory committee based in Lisbon, Portugal. The committee includes Brian Crane and Felix Lutsch from Chorus One, along with three other members, all of whom have experience operating crypto-native businesses and blockchain infrastructure.

Meegan highlighted the unique aspect of Frachtis, stating that it is one of the few funds in the space that combines experience in operating crypto-native businesses with expertise in blockchain infrastructure. He noted that the fund has been raising capital over the past 12 months and that the current era in crypto is focused on consumer apps. Meegan believes that the next big winners in crypto will be applications that leverage existing infrastructure, rather than launching more Layer 1 (L1) and Layer 2 (L2) solutions.

Meegan also expressed interest in the intersection of AI and crypto, particularly in the development of AI agents that require faster and more contextualized data. He emphasized the importance of building infrastructure to support these agents and the need for security measures to mitigate risks. Additionally, Meegan sees AI personalization, retention, and loyalty as key factors for the success of crypto applications, as more projects go live in the space.

Meegan described the current environment as a "great time" to invest, noting that the difficulty in raising funds has forced founders to strengthen their ideas. He expects to see limited partners (LPs) become more active in the next 12-18 months. Meegan also shared that Frachtis has already invested in eight projects, including Turtle Club and Hyve, and plans to continue investing in the pre-seed and seed stages.

Frachtis' investment strategy is based on a long-term thesis, with a framework developed over several years to analyze founders and teams. Meegan believes that the projects Frachtis has invested in are positioned to win in the long term. The fund's focus on consumer and mobile apps, as well as the intersection of AI and crypto, positions it well to capitalize on the next wave of innovation in the crypto space.