Faction
Venture capitalActively deployingPalo Alto Β· SeedβSeries A Β· 9 people tracked
Also known as FACTION VENTURES, LLC Β· Lightspeed Faction Β· Lightspeed Faction Principals Β· Lightspeed Faction US
Investment thesis
Faction focuses on early-stage crypto and blockchain startups, investing at Seed and Series A across both equity and tokens with a flexible, long-term approach. The firm believes crypto will grow dramatically over the coming decades and seeks to partner with builders creating fundamentally useful blockchain technology. It invests across the entire stack, from layer zero to applications, and across sectors ranging from DeFi to NFTs. Faction describes itself as vertical agnostic, prioritizing great entrepreneurs who create real utility and push the industry frontier, and it favors ambitious founders tackling major problems while balancing bold vision with precise execution.
Source: firm website, verified Aug 7, 2026.
Team Β· 9 people
from the firm's website & public directories
What they invest in
from 26 of 55 portfolio companiesCrypto & Web3 Γ17Fintech Γ12Data & Infrastructure Γ8Developer Tools Γ6AI & Machine Learning Γ5Cybersecurity Γ3Enterprise Software Γ2SaaS Γ2
HQs:United StatesΓ7
Investments Β· 55 tracked
founders shown can be your intro pathAmmalgam is a decentralized lending exchange (DLEX) that combines trading and lending in a single DeFi protocol, letting users lend, trade, and leverage any asset without oracles through Dual Purpose Pools.
Crypto & Web3Fintech
Faction develops a hybrid autonomous vehicle platform called DriveLink that combines autonomy with remote human assistance (TeleAssist) for driverless fleet operations.
Advanced ManufacturingAI & Machine LearningLogistics & Supply ChainMobility & TransportationRoboticsSan Francisco, US
Ain McKendrick(Founder)in
Figure is a lending platform that offers residential and commercial loan products including home equity lines of credit, cash-out refinances, DSCR loans, and crypto-backed loans for borrowers.
AI & Machine LearningCrypto & Web3FintechCharlotte, US
Mike Cagney(Co-Founder, Executive Chairman)inJune Ou(Co-Founder, Advisor, Board Member)inJin Woo Park(Executive Officer, Director)
Flashbots is a research and development organization that mitigates negative externalities from Maximal Extractable Value (MEV) on blockchains, primarily Ethereum, through infrastructure and tools for block building, transaction protection, and MEV distribution.
Crypto & Web3Data & InfrastructureDeveloper Tools
Kamino is a DeFi protocol on Solana that combines lending, liquidity provision, and leveraged trading in a single platform.
Crypto & Web3Fintech
Orb is a web3 social application built on the Lens Protocol for social networking and content sharing on blockchain infrastructure.
Crypto & Web3Social
MagicBlock builds blockchain infrastructure, including a modular stack and ephemeral rollups, for developers creating high-performance on-chain applications on Solana.
Crypto & Web3Data & InfrastructureDeveloper ToolsFintechGaming
Andrea FortugnoGabriele Picco
ZKsync provides blockchain infrastructure and deployment services for enterprises, helping them build and launch production-ready solutions on the ZKsync network.
Crypto & Web3Developer ToolsEnterprise Software
Nous Research develops and trains open source language models and builds infrastructure for distributed AI training.
AI & Machine LearningData & InfrastructureDeveloper Tools
Jeffrey Quesnelle(Founder & CEO)
OpenFX operates a real-time settlement network for cross-border payments that replaces traditional international payment systems, enabling businesses to move money across borders significantly faster and cheaper.
Fintech
Prabhakar Reddy(Founder & CEO)
Pontem is a product development studio building applications on the Move VM and Aptos blockchain, as well as a rollup technology suite enabling developers to deploy applications across different virtual machines and settle to various Layer 1 blockchains.
Crypto & Web3Developer Tools
Hel.io (MoonPay Commerce) provides crypto checkout, deposit, and subscription tools that let merchants accept payments in thousands of cryptocurrencies and stablecoins, with instant settlement or auto-conversion to fiat.
Space and Time provides blockchain indexing, secure offchain data, and zero-knowledge proofs for onchain financial applications.
Crypto & Web3Data & Infrastructure
Scott Dykstra(Founder)in
CybersecurityData & InfrastructureFintechNewark, US
WeatherXM operates a decentralized weather network where station owners earn cryptocurrency tokens for providing hyperlocal weather data; the platform offers weather data APIs for businesses and research organizations while maintaining a global community-powered DePIN infrastructure.
Climate TechCrypto & Web3IoT
Wintermute provides trading and liquidity solutions for digital asset markets, including OTC trading, liquidity provision for protocols, DeFi partnerships, algorithmic trading, and venture investments in early-stage blockchain projects.
Crypto & Web3Fintech
Frequently asked questions
- What stage does Faction invest at?
- Faction invests at the Seed, Series A stages.
- What is Faction's typical check size?
- Faction typically writes checks of $50K β $5M.
- What sectors does Faction focus on?
- Faction focuses on Crypto & Web3.
- Where is Faction located?
- Faction is headquartered in Palo Alto, US.
- Does Faction lead rounds?
- Faction typically participates in rounds rather than leading them.
Media Β· Podcasts & interviews
featuring the teamManos Nikiforakis, WeatherXM and Tim Khoury, Faction VC
Token Warrant Β· Tim Khoury
Co-investors Β· 20
Pantera Capital is a blockchain and cryptocurrency-focused investment firm that pioneered early crypto funds in the U.S., offering exposure through venture equity, early-stage tokens, and liquid tokens.
Electric Capital is an early-stage venture firm founded in 2018 that backs founders building trust-minimized technologies across AI, crypto, fintech, and related sectors.
Quona Capital is a venture capital firm that invests in fintech companies expanding financial access in emerging markets across Latin America, India, Southeast Asia, and EMEA.
Bankless Ventures is a venture firm backing founders building in the Web3 and crypto ecosystem.
General Catalyst is a venture capital and investment firm that backs founders across industries, with a strong focus on AI-driven transformation, fintech, healthcare, and other sectors.
Oak HC/FT is a growth equity firm that partners with founders building companies in healthcare and financial services, with a focus on enterprise technology and AI.
Nexus Venture Partners invests in early and early growth stage companies operating in India and the United States across multiple sectors. The firm was founded by entrepreneurs with experience building companies.
Vibe Capital (Vibecap) is a venture firm investing in AI, Web3, and deep tech startups, aiming to back founders building more equitable, transparent, and accessible structures.
boldstart ventures is an early-stage venture firm that partners with technical founders at company inception, leading pre-product rounds and helping build enterprise software companies.
Mouro Capital is a venture capital investor backing early to growth stage companies, leveraging its expertise and global network across multiple regions.
Galaxy is an institutional digital assets and data center company offering trading, lending, asset management, investment banking, staking, custody, and venture investing across the crypto and blockchain ecosystem, along with a strategic expansion into AI/HPC data center infrastructure.
Unpopular Ventures is an investment firm that backs standout startups found off the beaten path, favoring opportunities that are contrarian or unpopular early on.
βΆ8 more co-investors
BackedPillar VCMusha VenturesSommet ABbacktrace capitalNew Form CapitalGalaxy InteractiveMicrotraction
Firms observed investing alongside Faction, from public investor directories. Shared companies are the overlap with Faction's recorded portfolio.
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