CoinFund's Strategic Spin-Off and Its Implications for Web3 Venture Capital

In December 2025, CoinFund announced a strategic spin-off of its liquid strategies into a new, independent firm, a move that signals a broader shift in the Web3 venture capital (VC) landscape. This decision allows CoinFund to focus entirely on venture investing within the Web3 ecosystem, aligning with a maturing industry that prioritizes infrastructure, decentralized finance (DeFi), and AI integration over speculative hype. The spin-off is not an isolated event but part of a larger trend where specialized VC firms are increasingly outperforming generalist counterparts in driving long-term value in a post-liquidity Web3 ecosystem.

The Strategic Shift in Web3 VC: From Speculation to Infrastructure

CoinFund's post-spin-off strategy reflects a focus on projects with clear technical execution, regulatory readiness, and real-world utility. For instance, the firm recently led a $10 million Series A round for Irys, a programmable datachain enabling decentralized storage solutions, and supported Bagel Network, a protocol for AI-computable data layers. These investments highlight a shift toward infrastructure and AI-driven blockchain applications, areas where CoinFund and other specialized VCs are betting on scalable, institutional-grade solutions.

This trend is echoed across the industry. In Q3 2025, global crypto VC investments surged to $4.8 billion, with 57% of capital directed toward later-stage companies and infrastructure projects. Founders are now expected to demonstrate product-market fit, robust compliance frameworks, and revenue models akin to traditional web2 businesses. Regulatory clarity, particularly in the U.S. and EU, has further accelerated this shift, enabling DeFi platforms and tokenized real-world assets (RWAs) to attract institutional capital.

Specialized VCs Outperform Generalists in a Post-Liquidity Era

The performance gap between specialized and generalist VC models has widened in 2025. Data from Carta's Q3 2025 report shows that later-stage deals accounted for 56% of Web3 VC investments, with major institutional-grade projects like Revolut ($1 billion) and Kraken ($500 million) dominating the landscape. In contrast, pre-seed fundraising hit a multi-year low, reflecting a market that rewards traction over early-stage innovation.

Historical performance metrics reinforce this trend. Research from PitchBook (2021) and Gompers et al. (2009) indicates that specialized VC firms-particularly those with deep technical and regulatory expertise-outperform generalist funds in terms of internal rate of return (IRR) and net TVPI (Total Value to Paid-In Capital). For example, the 2017 and 2018 VC vintages are on track to deliver net TVPI multiples of 3.52x and 3.07x, respectively, with specialized funds in Web3 infrastructure and AI integration leading the charge.

CoinFund's spin-off exemplifies this specialization. By divesting its liquid strategies, the firm can concentrate on high-potential verticals like blockchain infrastructure and DeFi, where it has a proven track record. This aligns with broader industry data showing that specialized VCs are better positioned to navigate regulatory complexities and institutional demands, creating a more favorable performance outlook compared to generalist funds.

Institutional-Grade Infrastructure and Regulatory Clarity

The rise of institutional-grade infrastructure is a cornerstone of CoinFund's post-spin-off strategy. Projects like Irys and Bagel Network address critical gaps in decentralized storage and AI data layers, areas where institutional investors demand robust security, compliance, and scalability. According to a 2025 Galaxy report, institutional-grade infrastructure-including secure custody solutions, cross-chain liquidity, and tokenized RWAs-is attracting 57% of VC capital in Q3 2025.

Regulatory frameworks like the EU's MiCA regulation and the U.S. FIT21 Act are further enabling this shift. For example, BlackRock's tokenized money market fund shares on Ethereum reached $300 million in Q4 2024, demonstrating growing institutional confidence in Web3 infrastructure. CoinFund's composite ether staking rate (CESR) initiative also underscores its focus on institutional-grade solutions, providing a benchmark for staking yields that align with enterprise risk frameworks.

The Road Ahead: From Hiring to IPOs

CoinFund's 2026 Founders' Forecast highlights a maturing ecosystem where 84% of blockchain startups plan to expand teams, and 40% are considering public listings or structural transformations like DAOs or foundations. This aligns with broader VC trends: as the Web3 sector stabilizes, founders are prioritizing revenue growth, product-market fit, and regulatory compliance over speculative token economics.

For specialized VCs like CoinFund, the post-liquidity era presents opportunities to scale infrastructure projects that meet institutional demands. By focusing on areas like DeFi, AI integration, and RWA tokenization, the firm is positioning itself to capitalize on a $16 trillion RWAs market by 2030. This strategy mirrors industry-wide shifts, where VCs are increasingly selective, prioritizing projects with clear revenue models and enterprise-grade utility.

Conclusion

CoinFund's strategic spin-off is a microcosm of a broader transformation in Web3 venture capital. As the industry moves beyond liquidity-driven speculation, specialized VCs are emerging as key drivers of long-term value creation. By focusing on infrastructure, regulatory readiness, and institutional-grade solutions, firms like CoinFund are not only navigating the post-liquidity landscape but also shaping its future. In a world where generalist funds struggle to keep pace with institutional demands, specialization-backed by technical expertise and regulatory alignment-will remain the cornerstone of sustainable growth in Web3.