Dispersion Capital, a new crypto-focused venture firm, has launched a fund of $40 million that focuses on pre-seed investments and seed investments into Web3 infrastructure projects. Limited partners included USDC issuer Circle’s venture capital arm, enterprise-focused crypto company Ripple, and Web3 infrastructure giant Alchemy’s investment arm.

The fund has opened for business in the midst of a prolonged crypto bear market, which has slowed down investments. Infrastructure projects have proved to be most resilient sector.

In , Patrick Chang, the founder and managing director of Dispersion Capital wrote an announcement. Their work will enable the creation and launch of multi-chain, multiple-currency and multi-platform apps. We are looking to fund and find the basic tech layers which make this possible.

Chang said to TechCrunch in that Dispersion Capital had already deployed around 10% of the fund. This included backing 20 companies including Chaos Labs, an on-chain security platform, and Mystiko Network a Web3 Privacy Infrastructure Layer.

Chang wrote in his blog that 2021 will see a surge of venture capital funding into the crypto sector. The focus is on decentralized applications, or what Chang calls the application layer of Web3, which helps users to gain access to areas like non-fungible (NFT) tokens and decentralized finance. Crypto infrastructure fell short as the bull market turned into a bear.

Chang wrote that “Web3’s Foundational Layer wasn’t ready (and is still not) for billions of Users.”

Chang is an active angel investor who has been in venture capital since the early 1990s, working at Bain Capital Ventures, Samsung Next, and other companies. Chang, an institutional investor has made investments in a number crypto companies including Alchemy Labs, Dapper Labs, and Flow. He told CoinDesk via a message.

Read more: Alchemy Venture Arm Wants To Align With “Web3 Missionaries Not Mercenaries”

Updated (UTC 1556): Addition of Dispersion Capital portfolio in fourth paragraph. Expansion on Chang’s career history at the end paragraph.

Stephen Alpher edited the book.