Crypto asset manager Valkyrie Investments quietly disclosed earlier this month that the largest investor in the funding round had backed out, leaving Valkyrie struggling to find others to fill the gap months after reporting it had secured $11.15 million.
Leah Wald, CEO of Valkyrie, stated in a letter that has largely gone undetected up to this point that CSA Evolution VC Fund was no longer able to provide $5 million to the deal.
She stated in the letter dated October 7 that they “had a signed subscription doc in-hand, and their [limited partners] were blue chip firms that have impeccable reputations in the business.”
However, the LPs withdrew in the months that already passed, thus the investor was unable to fulfill its commitment. She continued by saying that Valkyrie was searching for other investors.
A representative for Valkyrie said that the company was definitely in advanced talks with a number of possible investors who have shown interest in the firm. “(We) hope to have positive news in the coming weeks,” the representative added.
Prior to the release of this story, only Wald’s letter show up when searching for “CSA Evolution VC Fund” on Google.
However, there are indications that Clear Sky Advisers (CSA) — a Houston-based company that defines itself as an investor in “environmental credits and companies focused on decarbonization, electrification and resource sustainability” — may be involved in some way.
Valkyrie’s June press release regarding the $11 million fundraiser included a participant named “Clearsky” among others. The CSA Evolution VC Fund was not mentioned.
In addition, there is a direct link between Valkyrie and Clear Sky Advisers. In regulatory filings for its exchange-traded funds (ETFs), Valkyrie mentioned CSA CEO Shawn Singh. For instance, he is recognized as a trustee of the Valkyrie ETF Trust II.
