Mantle Core announces $200M funding for Web3 development

Mantle Core filed an application for $200 million in funding for early-stage Web3 companies on BitDAO’s governance forum on February 26. Developers and Dapps will be able to utilize Mantle’s network more effectively through the ecosystem fund.

Mantle is an Ethereum layer-2 network created by the BitDAO ecosystem. Over the next three years, a $200 million capital pool will be invested in the Mantle ecosystem. The BitDAO treasury would contribute $100 million in USD Coin, with the remaining $100 million coming from “strategic venture partners” who would provide external matching funds.

Funds such as Pantera, Dragonfly Capital, Folius Ventures, Spartan, Lemniscap, Selini Capital, Play Ventures Future Fund, Cadenza Ventures, and QCP Capital have expressed interest in participating in Mantle’s proposal.

If approved, projects will receive a 1:1 co-investment from the Mantle EcoFund and venture partners. The ecosystem fund will prioritize Web3 startups seeking pre-seed, seed, and series A funding.

According to a Mantle representative, the fund’s projected active investment period is three years, with an additional two years of potential extension. The first fund operator is proposed to be a collaboration between Mirana Ventures, Bybit, and BitDAO, with an investing committee comprised of Mirana Ventures, Mantle, BitDAO, and Bybit members.

According to a Mantle Core spokesperson, the fund aims to invest in over 100 Mantle-implemented projects and achieve a multiple on-invested capital (MOIC) of 1.5x cumulative performance over the fund’s lifetime.

A 2% management fee, which would be the “industry norm,” would be used to cover the EcoFund team’s operating costs for things like sourcing, due diligence, legal, portfolio support, and fund administration.

Similar projects aim to increase adoption and innovation in the cryptocurrency industry. Last year, Polygon, an Ethereum scaling solution, established a $100 million fund to improve access to decentralized finance, onboard customers, and drive adoption.

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