On February 26th, 2023, Mantle Core proposed the creation of a $200 million fund dedicated to supporting early-stage Web3 startups in the BitDAO governance forum. The objective of this ecosystem fund is to encourage the adoption of Mantle’s network by developers and dApps.
[DISCUSSION] Mantle EcoFund@0xMantle has posted a discussion proposing:
✅ Authorization to establish Mantle EcoFund 1 of a capital pool of $200M (catalyzed with a target size of $100M from BitDAO).
✅ Authorization of first capital call: $10M USDC from the #BitDAO Treasury.
— BitDAO (@BitDAO_Official) February 26, 2023
Mantle is an Ethereum Layer 2 network created by the BitDAO ecosystem. It was created to improve support for high-throughput decentralized apps (dApps), such as gaming, decentralized autonomous organization activities, and derivatives decentralized exchanges (DEXs) (DAOs).
The proposal requests a capital pool of $200 million to be invested in the Mantle ecosystem during the next three years. BitDAO’s treasury will provide $100 million in USD Coin, and external joint venture partners will contribute an additional $100 million as matching capital.
The proposal calls for independent, experienced, and reputable venture funds or entrepreneurs with extensive industry and product knowledge, robust networks, and a proven track record of financial success to comprise the Strategic Venture Partners. These strategic venture partners must share a passion for nurturing aspiring entrepreneurs and establishing businesses based on the Mantle ecosystem.
According to Mantle, partners like Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures, and QCP Capital have shown interest in taking part.
Mantle believes that having a combination of investors and founders as strategic venture partners would generate new and thrilling opportunities. They believe that the future growth of the Web3 ecosystem will be fueled by innovative products developed by aspiring founders in response to critical market demands, supported by long-term business and revenue models.
If approved, projects will require a 1:1 co-investment from the Mantle EcoFund and its venture partners. The EcoFund will focus exclusively on Web3 firms raising pre-seed, seed, and Series A rounds.
Mantle also proposes an industry-standard management fee of 2% to cover the operating expenses of the EcoFund’s operating team, including sourcing, due diligence, legal, portfolio support, and fund administration.
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