Crypto-focused investment firm M31 Capital has launched a new investment fund dedicated to Web3 businesses, further highlighting the industry’s shift towards decentralized internet projects.

The M31 Capital Web3 Opportunity Fund will invest up to $100 million in token projects and private equity opportunities within Web3, the company announced on Oct. 4. Initially, the fund will invest in projects to build decentralized internet infrastructure and applications. Presumably, the new investment vehicle will be a “liquid venture capital fund,” a structure that gives investors liquidity after only a 12-month lock-up period.

M31 said it had already secured $50 million in commitments from investors and would raise another $50 million before capping the fund at $100 million.

Despite the ongoing crypto bear market, 2022 has seen a proliferation of investment funds dedicated to Web3 projects, a clear sign that investors are seeing value amid the turmoil. As reported by Cointelegraph Research, Web3 has dominated venture capital interest this year. In the second quarter alone, Web3 projects accounted for around 42% of all individual transactions in the blockchain space.

Related: Spain’s biggest telecommunications brand dives deep into Web3

Crypto markets have shown a high degree of correlation with traditional stocks for much of 2022, leading some investors to speculate that prices have diverged significantly from their fundamentals. However, a high correlation suggests that more near-term trouble may be in store for the crypto sector as central banks around the world attempt to rein in inflation.

Nathan Montone, an early Bitcoin (BTC) investor who founded M31 Capital in 2016, said the current crypto market cycle is the first time in a decade that “price is trending lower as fundamentals and revenue growth are hitting all-time highs almost every day.” .”