Lennertz & Co, a German multi-family office, is once again targeting the blockchain sector and has ambitious plans to raise $165 million.

This marks the firm's third blockchain-focused fund of funds. According to an exclusive report by Fortune, this strategic move reflects Lennertz's ongoing commitment to the rapidly evolving blockchain industry.

Building on Past Successes

The firm's journey into the crypto industry began in 2016. By 2020, Lennertz officially launched its first blockchain fund worth $35 million.

This fund backed high-profile venture capital firms such as Multicoin, Polychain, and Hack VC. Encouraged by its success, Lennertz rolled out a second fund in 2022, securing $65 million.

This time, the focus was on generalist funds like Bain Capital, Lightspeed, and Andreessen Horowitz, which implemented crypto strategies.

Aiming for Top-Tier US Firms

Lennertz is now gearing up for its third fund, targeting top-tier US venture capital firms. As per Fortune, the $165 million will be strategically invested in 8 to 10 companies.

While the focus is on American firms, some European investments will also be considered. Lennertz plans to invest in Polychain and Bain Capital blockchain funds, with an expected annual return of over 35%.

"Blockchain is sitting quite comfortably," said Oksana Tiedt, highlighting the firm's robust performance in the crypto sector.

Expanding Horizons in DeFi and AI

Lennertz's blockchain investments account for 10-12% of its overall portfolio, which underscores the firm's confidence in the space.

Despite market volatility, Lennertz's strategy of investing in other funds has shielded it from the downturns. The firm plans to explore opportunities in the decentralized finance (DeFi) ecosystem and the burgeoning artificial intelligence (AI) sector.

Navigating Market Challenges

The firm's approach to investing does not involve direct investments in cryptocurrencies or related assets. Instead, Lennertz allocates capital to venture capital firms and financial institutions supporting Web3 companies.

This strategy has proven effective, allowing Lennertz to navigate market challenges while focusing on innovation and growth.