- PayPal Ventures Takes the Lead in $52M Funding Round for Magic
- StepStone VC Raises Impressive $97M for Blockchain Funds
- Venture Capital Giants Show Strong Support for Crypto Industry
In a sign of growing institutional interest in the crypto space, PayPal Ventures, the venture capital arm of PayPal, has taken the lead in a strategic funding round that raised $52 million for Magic, a prominent provider of wallet-as-a-service (WaaS) solutions.
According to the announcement, the funding round also saw participation from notable investors, including Cherubic, Synchrony, KX, Northzone, and Volt Capital. With this latest injection of capital, Magic’s total funding now surpasses $80 million.
Enabling and Supporting Web3 Mass Adoption
Magic plays a vital role in driving the mass adoption of Web3 technology by serving as a trusted WaaS provider for companies seeking secure and user-friendly methods to transition their customers to the Web3 ecosystem.
The company offers an enterprise-grade solution that streamlines the migration process, creating new avenues for customer loyalty programs, digital collectibles, employee recognition, ticketing, memberships, and more. Renowned brands in various industries, such as retail, music, fashion, and gaming, including Mattel, Macy’s, Xsolla, and Immutable, rely on Magic’s services.
Sean Li, co-founder and CEO of Magic, expressed his vision for the company’s future. He stated:
“Our goal is to unlock new economic opportunities by enabling authentic digital ownership for everyone.”.
Li emphasized the importance of building the necessary infrastructure to onboard the following billion users to Web3. With the fresh funding, Magic plans to enhance functionality, expand use cases, and deliver increased value to its customers. The company also aims to deepen its integration within the European Union and Asia-Pacific region.
Alan Du, a Partner at PayPal Ventures, commented on the significance of Magic’s services in driving Web3 adoption, stating:
“Mass adoption of Web3 is a hot topic, and Magic is facilitating this with a safe and simple solution.”
Magic’s wallet creation service allows companies to onboard millions of users to their applications and introduce newcomers to the Web3 environment. Carrying it to Twitter, Magic asserted that it is addressing the challenge of web3 onboarding, aiming to provide a wallet to every individual connected to the internet.
PayPal Ventures is proud to invest in Magic and believes the company will play a pivotal role in driving the growing number of Web3 use cases among global brands.
StepStone V.C. Raises $96.54M for Blockchain-Focused Funds
In addition to PayPal Ventures, StepStone V.C., the venture capital division of StepStone Group, a global firm, has achieved significant success by raising $96.54 million for two private equity funds focused on blockchain technology. The details of the fundraising activities were disclosed in recent filings submitted to the U.S. Securities and Exchange Commission, shedding light on StepStone V.C.’s entry into the cryptocurrency realm.
The first fund, StepStone V.C. Blockchain I, L.P., based in the United States, attracted $71.23 million from 100 investors since its initial sale on June 7, 2022. Simultaneously, the Cayman Islands-based version of the fund, StepStone V.C. Blockchain I (Cayman) L.P., managed to secure $25.31 million from 41 investors during the same period.
StepStone Group’s entry into the cryptocurrency industry becomes evident with the launch of its blockchain-focused funds. This marks the first deliberate move by StepStone Group to explore the potential of the crypto market. The expansion into the digital asset space follows StepStone Group’s acquisition of Greenspring Associates, a venture capital and private equity platform, in September 2021. This strategic acquisition allowed StepStone Group to enhance its offerings in the alternative investment landscape, adding to its existing $18.9 billion assets under management.
Commitment to the Crypto Sector
Under the umbrella of StepStone V.C., the venture capital division of StepStone Group, the firm now manages a diverse portfolio of more than 30 funds. The recent introduction of blockchain-focused funds signifies StepStone Group’s commitment to identifying and capitalizing on opportunities within the cryptocurrency sector.
While StepStone Group has chosen not to provide specific details regarding the newly established funds, their previous involvement as limited partners in CoinFund’s $300 million Web3 fund, announced in August of the last year, serves as a clear indication of their prior interest and engagement in the crypto industry.
As the crypto industry continues to evolve, partnerships between traditional financial institutions and innovative blockchain startups will be crucial in driving widespread adoption and unlocking the full potential of this transformative technology. The investments made by PayPal Ventures and StepStone V.C. showcase the belief in the future of crypto and blockchain, signaling a promising path forward for the industry as a whole.
