The owner-managed family office Lennertz & Co. is continuing its family of funds of funds for investments in innovative blockchain technologies, launching Blockchain Fund III. The strategy focuses on targeted investments in blockchain technology by investing in companies that build and develop the blockchain infrastructure.
This approach significantly differentiates the fund of funds' investment strategy from many other investments that are currently focused on cryptocurrencies. The target volume for the Lennertz & Co. Blockchain Fund III is set at approximately EUR 150 million (approx. USD 165 million).
The family office launched one of the world's first blockchain venture fund of funds in 2020, demonstrating its innovative strength. This was followed by Blockchain Fund II in 2022.
Both these predecessor funds currently show an IRR (Internal Rate of Return) well above the target return of 35% p.a. This performance stems from the increased valuations of the invested funds, some of which have grown by a factor of more than 10 since the start of investments 3–4 years ago. Lennertz & Co. expects similar returns for the newly launched Blockchain Fund III.
"We are known as a family office for entrepreneurs and institutional investors who invest early in world-changing technologies and long- term megatrends," says Philipp Lennertz, Managing Partner at Lennertz & Co. "In addition to artificial intelligence, defense & security, and impact investing – blockchain technology is one of the most attractive investment themes for the coming decades, and will dominate both the economy and society."
The Future of Web 3.0 is Now
Blockchain technology forms the foundation for the emergence of Web 3.0, a decentralized peer-to-peer network. In contrast, Web 2.0 is dominated by large online platforms that act as intermediaries, amassing vast amounts of data, which is the source of their market power.
At the core of the Web 3.0 infrastructure are topics such as security, decentralization, consensus mechanisms, and scalability. "Blockchain technology has the potential to become relevant to every industry and to disruptively change it. Many companies have already recognized this and are working on blockchain applications for their industries," says Philipp Lennertz.
Blockchain Fund III, like its predecessors, will invest in 8–10 blockchain-focused venture capital funds in Europe and especially in the USA. "By continuing our fund series, we enable consistent investment in the blockchain space," says Philipp Lennertz. "A portfolio structured in this way optimally combines the return potential of an asset class with diversification across multiple vintage years."
As a first mover in blockchain fund investments and due to its long- standing relationships within the blockchain and venture capital ecosystem, Lennertz & Co. has unique access to the world’s most renowned fund managers.