The cFund early-stage investment strategy deployed on Cardano

  • cFund, developed in partnership with IOG and Wave Financial, supports developers in building on the Cardano blockchain.
  • In the long-term, the hedge fund aims at becoming an integral part of Cardano, and a change-pioneer for its stakeholders.

The cFund investment activity is now gaining momentum as Cardano inches towards smart contract ability. As an early investment strategy, cFund focuses on innovative tech firms whose products are deployed on the Cardano blockchain. It also places interest in other research and development (R&D) projects from Input Output Hong Kong (IOG).

First announced at last year’s Shelley summit, the cFund hedge fund is managed by Wave Financial in partnership with IOG. The former is a digital asset manager with roughly $500 million in assets under management.

According to David Roebuck, Principal at Wave Financial, the “c” in cFund stands for “co-efficient”. This is a mathematical term that refers to the multiplier of a variable. cFund, therefore, leverages its managers’ expertise, reputation, networks, and resources to multiply their growth and enable unrivaled access.

Notably, the cFund came up to drive IOG’s vision. IOG’s first goal is to facilitate developers in creating scalable, interoperable, and sustainable blockchain-based solutions. The second is to encourage financial inclusion in global underserved populations. cFund, therefore, gives strategic advice, capital, and partnership to its portfolio companies wishing to build on the Cardano blockchain.

cFund investment approach

Funded by third-party tycoons, family offices, and institutional investors (like IOG), cFund is already distributing capital across the Cardano ecosystem. The hedge fund’s investment approach begins with ‘timing the market’. In this, the fund determines the need and the competitiveness of a particular project. Afterward, the fund assesses the knowledge, abilities, skills, and resources of the project’s founders to determine their scaling capability. The fund also considers what value projects add to Cardano and possible existing scenarios.

An example of one operation that has been receiving support from cFund is COTI, a global decentralized payments network. COTI is a value-add as it bridges the way for DeFi applications to deploy on the Cardano blockchain. Lately, the company has been developing ADA Pay for merchants to make near-instant payments through ADA – Cardano’s native token. COTI is also developing a stablecoin that will run on Cardano.

Another cFund DeFi investment is Blockswap automated liquidity protocol, which allows users to re-stale their staked assets. The protocol’s DeFi value lies in enabling users to earn yield without using synthetic assets. cFund’s latest investment is Occam. Fi, which provides a set of DeFi solutions, including a decentralized funding platform.

Project funding and long-term goals

To become considered by cFund, prospective projects or businesses need to get in touch via Wave Financial’s early-stage distribution email. Alternatively, they can reach out to Roebuck through direct message or via Twitter.

In the long run, cFund aims to become the top early-stage venture firm primarily investing in Cardano-based blockchain technologies. The fund also intends to become a fundamental component of the Cardano ecosystem. cFund’s fair and transparent objective for stakeholders is in line with IOG’s founding principle that states,

Cascading disruption, the idea that most of the structures that form global financial, governance and social systems are inherently unstable and thus minor perturbations can cause a ripple effect that fundamentally re-configures the entire system.

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