Sfermion Closes $100M NFT Fund


Sfermion, a Chicago, IL-based investment firm focused on the non-fungible token (NFTs) ecosystem, closed its second venture fund, at $100M.

Backers included Alan Howard, Chris Dixon, Marc Andreessen, Cameron and Tyler Winklevoss, Matthew Roszak, Digital Currency Group, CMT Digital, and Animoca Brands.

Fund II will build a portfolio of investments that underpin the development of the metaverse and the environments that will form it.

Founded in 2019 by Andrew Steinwold and also led by Dan Patterson, general partner, Sfermion is an NFT investor which aims to accelerate the emergence of an open, decentralized metaverse by supporting companies working to develop its infrastructure. The firm invests across the entire non-fungible capital stack, focusing on three types of investments – early-stage venture equity, tokens, and direct NFTs.

Non-fungible tokens and associated technologies enable the formation of the metaverse – a virtual environment where people will live, work, and play – through their ability to give users ownership in the digital world. Trading in NFTs climbed to $10.7 billion in the third quarter of 2021, an increase of more than 700% from the previous quarter, according to a report by blockchain analytics firm DappRadar.

Fund II follows Sfermion’s first NFT-focused fund, Fund I, which primarily focuses on direct NFT investments.

Steinwold has invested in over 40 NFT-related companies to-date, including OpenSea, SuperRare, Artblocks, Yield Guild Games, Nifty Island, DeHorizon, Mojito, and Alethea AI.