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A new venture-capital fund has raised $60 million to invest in projects on the Solana blockchain ecosystem, with the goal of attracting new developers. The fund, run by Colosseum, will make early-stage investments in select winners of Solana’s hackathon program. This initiative aims to help Solana close the gap between the number of developers working on the blockchain compared to its rival Ethereum.

Colosseum’s model allows them to work closely with early-stage teams building on Solana, taking on the risk of teams developing at the application layer. The company’s co-founders, including Clay Robbins and Matty Taylor, who previously ran Solana’s hackathon program, hope to extend the reach of the crypto industry beyond its current user base. The fund, known as Fund I, will make pre-seed investments in Solana-based projects that have been declared winners of the hackathon program and have entered an accelerator program.

Focusing on categories such as gaming, decentralized finance, and decentralized physical infrastructure, the fund aims to provide additional capital to grow on-chain projects within the Solana ecosystem. The Solana Foundation is a significant limited partner in the fund, along with other institutional investors who are new to cryptocurrency. While Colosseum’s initial fund is dedicated to the Solana blockchain, the company’s model can support the development and growth of early-stage technology in various sectors.

Despite the recent decline in venture-capital interest in cryptocurrency, Colosseum believes that investing in the application layer can generate demand for the underlying infrastructure. The company’s approach of integrating online hackathons with an accelerator and fund could drive the development and application of early-stage technologies. Hackathons and accelerator programs are effective tools to stimulate blockchain ecosystem development, particularly in a sector where many engineers are not traditional employees and are motivated by cash prizes.

Colosseum’s first hackathon earlier this year attracted 8,000 developers from almost 100 countries, with over 1,000 projects submitted. Winners of the hackathon included projects such as a new digital currency, a marketplace for trading tweets, and a Solana client for transaction capacity and yield-boosting purposes. The success of the hackathon showcases the potential for growth and innovation within the Solana ecosystem. Founders who participated in the first accelerator cohort will have the opportunity to present their projects at Colosseum’s upcoming demo day.

Overall, Colosseum’s venture-capital fund represents a significant opportunity for early-stage projects on the Solana blockchain to receive funding and support. By leveraging hackathons, accelerator programs, and financial investments, the company aims to drive growth and expansion within the Solana ecosystem. With the backing of the Solana Foundation and other institutional investors, Colosseum’s efforts have the potential to attract new developers to the blockchain industry and facilitate the development of innovative projects.

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