Bitkraft Ventures, an early-stage sport funding agency, has added new leaders who will double down on Web3 gaming investments.
Bitkraft, which raised its third fund in 2024 and has $1 billion in belongings beneath administration, introduced promotions for Carlos Pereira and Jonathan Huang to common companion and companion, respectively, serving to bolster their Web3 funding technique and additional committing to the blockchain phase of the gaming market.
Moreover, Matt Halstead, former director of the Instructor Retirement System of Texas (Texas Academics) Funding Fund and an early Web3 investor, has joined the agency as a enterprise companion.
Pereira has been instrumental to the expansion of Bitkraft’s Web3 Technique, which he has led since 2022. Up to now, Bitkraft has backed many class leaders on the intersection of interactive leisure, tech and crypto. It has led rounds in Immutable, the gaming-dedicated blockchain; Eve Frontier, a brand new blockchain enabled sport by the creators of the epic EVE On-line; Karate Fight, a fast-growing tokenized MMA league with over 100 million month-to-month impressions; and, Mira, a 2025 CB Insights Prime 100 firm in AI constructing verification infrastructure that’s processing three billion tokens a day in help of 4.5 million customers.
It’s a daring wager by Bitkraft — began by Jens Hilgers in Berlin — partly as a result of the trail to success in Web3 video games has stretched out and mass market acceptance isn’t assured, whilst many crypto bets in non-gaming areas have turned out to be higher investments. Some avid gamers within the West have had an allergic response to Web3 and that has stalled efforts by the massive sport corporations to undertake blockchain options. And about 93% of Web3 sport startups have failed with their token launches.
Nonetheless, Web3 sport corporations are hitting milestones, and various massive bets are nonetheless beneath manner. Web3 sport investments, accordingly, are beginning to come again after hitting a trough (with scores of investments per quarter) — maybe as a result of U.S. President Donald Trump favors an unfettered crypto market.
Why double down?
Because the Web3 market matures, Bitkraft is doubling down on its thesis that blockchain-enabled
digital rights, property, id and economies will redefine gaming, creator monetization, and
digital experiences.
I requested Pereira why Bitkraft is doubling down, given Web3 gaming’s challenges. He replied in a message to GamesBeat, “As a result of we predict we’ve got an edge within the class, not simply in video games however in shopper purposes that more and more lean on gamification and financialization as a generational development.”
He added, “Our numbers inform a compelling story: to this point we’ve been lower than 5% of our class funding, and but the quarter or so of our portfolio corporations which have a token characterize virtually half of the class’s general market cap.”
He stated that an abundance of funding, if something, is a number one indicator of compression of returns going ahead as valuations get pushed up. To shrink back from a class as a result of it’s too contrarian or under-funded can be in a way anti-VC.
“The dearth of mass market successes shouldn’t be a shock contemplating the overall time it takes to construct hit video games vs how lengthy Web3 video games have been investable, the overall ‘hit fee’ of VC investments, and the truth that in Web3 you’ve needed to construct a sport and work out non-trivial distribution and infrastructure challenges that solely actually within the final 12 months or two have gotten a soar in high quality/capability,” Pereira stated.
He famous there are a number of rising examples of apps at a top quality bar that’s broadly aggressive, for instance Boxed in Bitkraft’s portfolio with virtually $30 million in ARR, Cambria with excessive monetizing seasons which are deeply partaking to whales, Karate Fight with over 100 million month-to-month impressions and powerful consciousness in Web2, Legendary with its sports activities properties with excessive worth companions and powerful unit economics, and Gunzilla with robust each day lively person retention.
“Good issues take time, however the route of journey is obvious,” Pereira stated.
Management backgrounds
Huang joined Bitkraft in 2023 and brings a decade of expertise throughout Web2 and Web3 investments out of Asia, together with SEA Capital and Temasek, the place Huang drove their Collection G funding into Roblox. He focuses on shopper platforms, cellular studios and creator ecosystems throughout Asia, with an emphasis on next-generation person habits, use-cases, and rising monetization fashions which are reshaping the trade at scale.
Huang’s elevation to companion helps strengthen Bitkraft’s place in Asia and displays Bitkraft’s continued
funding within the area’s potential as a world epicenter for innovation throughout each Web2 and
Web3.
Halstead brings a uncommon mix of conventional asset administration and Web3 expertise to Bitkraft. As one of many first institutional traders in crypto, he spearheaded blockchain funding methods for the Texas Academics, an funding establishment managing over $200 billion in belongings. The agency believes his transfer to Bitkraft is a robust endorsement of Web3 gaming’s legitimacy as an investable class—and an indication that seasoned institutional capital allocators are seeing actual worth on this house.
Bitkraft launched its Web3 Gaming fund in 2021, which was a key catalyst within the agency’s evolution — increasing past Early Stage fairness investing into new asset lessons, rising markets and diversified financing options broadly serving the Interactive Media trade. Since then, Bitkraft has grown to $1 billion in belongings beneath administration, welcomed a strategic minority funding from Blue Owl, and broadened its world attain final 12 months with a brand new presence in India.
“Web3 has unlocked new artistic and financial fashions for builders, gamers, and communities, and Bitkraft has lengthy been dedicated to its potential,” stated Pereira, in a press release. “As we enter the following section of progress, we’re increasing our attain with skilled traders like Matt, whose institutional expertise and deep roots in crypto can solely strengthen our Web3 technique. Matt isn’t only a revered investor, he’s a peer and a visionary within the house, and I couldn’t be extra excited to have him be a part of Bitkraft.”
“Bitkraft has constructed a observe file of Web3 successes throughout the US, Asia, and rising markets,” stated Huang, in a press release. “With blockchain adoption persevering with to scale and new financial fashions proving sustainable, it is a pivotal second to again the following era of Web3 founders. We’re doubling down on our Web3 technique to assist construct the way forward for gaming, digital belongings, and interactive experiences.”
“I joined Bitkraft as a result of I consider their imaginative and prescient for Web3 isn’t simply forward-thinking, it’s transformative,” stated Halstead, in a press release. “Web3 has the facility to bridge the digital and bodily worlds, unlocking new experiences and financial fashions that put management again within the fingers of creators and gamers.”
He added, “Bitkraft doesn’t simply make investments on this future; they assist construct it as lively members, deeply embedded in Web3, gaming, and rising applied sciences. This makes them the best companion for these shaping the following period of digital leisure, and I’m excited to assist them attain and help innovators within the house.”
