Alpha Sigma, Transform Ventures partner on new $100M crypto-focused funds to invest in blockchain and Web3 startups

Global monthly funding in technology startups fell to $18 billion in February 2023, a number that has not been seen since February 2020 when global funding dipped below $20 billion in a single month. But there seem some rays of hope, especially for crypto startups.

Today, U.S.-based digital asset fund Alpha Sigma Capital and research firm Transform Ventures announced they’re partnering on two $100 million funds focused on the blockchain and so-called decentralized Web 3.0 ventures.

In a statement on Wednesday, Alpha Sigma founder and CEO Enzo Villani said Transform Ventures, a VC firm founded by crypto investor Michael Terpin, has merged some of its assets with Alpha Sigma’s parent to form a new holding company called Alpha Transform Holdings (ATH).

The joint investments will go into a new holding company and toward the two new funds with a total of $100 million in assets under management. The new funds include a new Alpha Liquid digital asset fund, which was launched early this month, with an initial investment by Terpin, who made a personal investment in cash, bitcoin, and Ethereum of $2.65 million, with an option to invest an additional $2.9 million.

The second fund, the Aegean Fund, is a closed-end venture capital firm that will focus on early-stage equity investments in blockchain, artificial intelligence (AI), and emerging technology startup companies.

The Alpha Transform products arm also includes Alpha Sigma Capital Research plus Transform’s Blockchain Wire news service and Content Syndicate distribution and market intelligence products while the final Alpha Transform Strategies strategy aims to provide end-to-end solutions for digital asset companies.

“The ATH vision is to shepherd in a new era of financial and technological innovation leveraging decentralization, blockchain technology and Web3 infrastructure,” said Alpha Transform Holdings CEO and CIO Enzo Villani in a press release. “The Alpha Transform model is to continue to support our portfolio companies with strategic advisory, acceleration, and capital to drive innovation and success.”

In 2019, Terpin won $75.8 million in a civil judgment against Nicholas Truglia, who defrauded Terpin of digital currencies, according to court documents. Truglia, who was 21 years at the time, along with other participants stole 3 million tokens from Terpin’s cellphone account in early 2018.