Avalanche Foundation Launches $220M Investment Fund

The funds will be used to invest the protocol's capacities for DeFi, NFTs, and enterprise applications.

Shutterstock cover by Kirill Skorobogatko.

Key Takeaways

  • The Avalanche Foundation has launched Blizzard, a $220 million investment fund.
  • Blizzard will allocate the funds to staples like DeFi and NFTs but also to “emerging use cases.”
  • Ava Labs plans to tokenize assets within traditional finance, according to its president.

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Avalanche is the latest Layer 1 smart contract protocol to announce deepening its pockets. The new funds will be directed toward the development of several of the protocol’s capacities, including those for DeFi, enterprise applications, and NFTs.

Avalanche Slated for Nine-Figure Injection

The Avalanche Foundation has announced a $220 million investment fund, dubbed “Blizzard,” for ecosystem development. Blizzard’s funds will be allocated towards the goal of accelerated development, innovation, and growth of the protocol. More specifically, its focus is on DeFi, enterprise applications, NFTs, and “other emerging use cases such as security token issuances, liquidity providers, and self-sovereign identity.” 

The Blizzard fund is backed by many prominent groups including the Avalanche Foundation itself, Ava Labs (the software company behind Avalanche), and Three Arrows Capital. Blizzard is intended to be an actively managed fund and it will support projects via equity investments, token purchases, business development, and ecosystem integration support.

Having launched a little over a year ago, Avalanche has over 320 projects building on the platform and has a total value locked of $8.2 billion, in addition to over 1,000 validator nodes. On the new investment fund, director of the Avalanche Foundation Emin Gün Sirer said:

“Blizzard will play a key role in further accelerating this growth, and solidifying Avalanche’s position as the premiere home for projects and people pioneering the next era in our space.” 

The Avalanche team describes it as the blockchain industry’s fastest smart contracts platform based on its time-to-finality. John Wu, Ava Labs President, acknowledged the importance of Avalanche for the decentralized world, but emphasized that “the ultimate goal for Ava Labs is to enable traditional financial services companies and traditional enterprises to tokenize their assets.” In other words, Wu says that the “$700 trillion in assets that sit on financial services balance sheets” is more in line with Ava Labs’ vision for Avalanche than the roughly $200 billion currently in DeFi. 

Other nine-figure investment funds or grants have been announced this year by other Layer 1 smart contract protocols. For example, NEAR protocol announced last week a colossal $800 million development grant. In June, Solana Labs raised $314 million, and in September, Cardano’s ecosystem received $100 million for DeFi and NFTs. 

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