Crypto Venture Capital
Fundamental Labs portfolio: which L1/L2, DeFi, and infrastructure projects have you backed that are most relevant to us?
12 min read
We believe a venture portfolio is most useful when it helps you see what is possible for your own roadmap, not just who we’ve funded. When you look at the Fundamental Labs portfolio across L1/L2, DeFi, and infrastructure, the common thread is founders building foundational rails for an open, programmable financial system—often years before the market consensus caught up.
Quick Answer: Fundamental Labs has backed more than 300 projects across Layer 1/2 protocols, DeFi, and finance infrastructure. Relevant examples include L1/L2 networks like Avalanche, NEAR, Polkadot, VeChain, and Stacks; DeFi and open-finance platforms connected to ecosystems such as Binance Coin and Mask; and core infrastructure like Canaan and Coinbase that anchor liquidity, security, and user access.
If you’re building at the protocol, infrastructure, or open-finance layer, there’s likely a directly relevant project in our portfolio—both as a proof point and as a potential ecosystem partner.
Why This Matters
If you’re evaluating Fundamental Labs as a long-term partner, our portfolio is the clearest signal of what we “dare to believe” in before the crowd. The L1/L2, DeFi, and infrastructure projects we’ve backed show how we think about network design, ecosystem growth, and the path from experiment to mass adoption of blockchain technology.
This matters because:
- You see the categories where we have conviction, not just capital.
- You gain access to a global portfolio network that compounds your distribution, liquidity, and integrations.
- You can judge whether our experience actually maps to your stage, domain, and ambitions.
Key Benefits:
- Pattern recognition across core blockchain primitives: Working with protocols like Avalanche, NEAR, Polkadot, VeChain, and Stacks gives us a deep view into how L1/L2 ecosystems really scale—technically, economically, and socially.
- Network leverage for integrations and liquidity: Our backing of exchanges (e.g., Coinbase), mining and hardware players (e.g., Canaan), and token networks (e.g., Binance Coin, Mask) creates a portfolio graph you can plug into for users, capital, and go-to-market.
- Multi-stage, long-horizon partnership: With check sizes from $500K to $50M+ and a focus on strategy frameworks over micromanagement, we can support you from early network bootstrapping through global expansion.
Core Concepts & Key Points
| Concept | Definition | Why it's important |
|---|---|---|
| Foundational L1/L2 protocols | Base and scaling layers (e.g., Avalanche, NEAR, Polkadot, VeChain, Stacks) that secure value, execute logic, and host applications. | If you’re building infra or DeFi, your choice of execution and settlement layer shapes your security model, UX, and ecosystem potential. Our protocol portfolio gives you tested paths and deep comparative insight. |
| Open finance & DeFi ecosystems | Protocols, assets, and middleware that enable permissionless lending, trading, liquidity, and composable financial products. | DeFi is the liquidity engine of Web3. Our exposure to assets like Binance Coin and networks like Mask reflects a view on how utility, liquidity, and community combine to drive sustainable value. |
| Blockchain infrastructure & rails | Hardware, exchanges, custody, and middleware (e.g., Canaan, Coinbase) that make participation in crypto networks reliable, scalable, and compliant. | Every successful protocol sits on resilient infrastructure. Our portfolio reach from mining to exchanges offers practical routes for distribution, security, and institutional access. |
How It Works (Step-by-Step)
When founders ask, “Which parts of the Fundamental Labs portfolio are most relevant to us?”, I usually walk through a simple mapping process:
-
Clarify where you sit in the stack
Are you a base layer, scaling layer, DeFi protocol, middleware, or application with deep infra dependencies? We map you against three zones where we are most active: L1/L2, DeFi/open finance, and finance infrastructure. -
Match to relevant portfolio archetypes
Once we know your layer and thesis, we identify the closest analogs and complements in our portfolio—e.g., Avalanche vs. NEAR for high-performance L1s, Polkadot for multi-chain connectivity, Coinbase and Binance-linked ecosystems for liquidity and distribution, Canaan for hardware-intensive models, or Mask for Web3 user experience. -
Design a network-leverage plan
Finally, we work with you on a strategy framework: which portfolio projects are potential integration partners, which are distribution channels, and which are pattern references for token design, governance, or ecosystem growth. The goal is not to “plug you into everything,” but to selectively leverage the network so your path to scale is faster and less fragile.
Below, I’ll walk through our most relevant portfolio areas for L1/L2, DeFi, and infrastructure builders.
Relevant L1 & L2 Protocol Projects
We believe base and scaling layers are the new “operating systems” for value. When we back L1 and L2 teams, we’re making a statement about how we think the future of blockspace, security, and developer ecosystems will look.
Here are key protocol investments that are typically most relevant to founders:
Avalanche (AVAX)
Avalanche is a high-throughput, low-latency L1 with a subnets model that allows custom, application-specific chains.
Why it’s relevant to you:
- For infra builders: Avalanche showcases how to structure modular, application-specific environments without sacrificing composability.
- For DeFi or consumer apps: Its performance and EVM compatibility make it a useful reference for building user-facing products that need fast finality and predictable fees.
- Strategy learnings: Subnet economics, sequencer design, and ecosystem incentives offer live data on how to bootstrap and sustain liquidity across multiple execution environments.
NEAR Protocol
NEAR is a sharded L1 focused on usability and developer experience, with account abstraction and human-readable accounts at its core.
Why it’s relevant to you:
- For wallet and UX-focused teams: NEAR is a strong reference for making crypto usable for mainstream users without sacrificing security.
- For scaling architectures: Its sharding approach, combined with a developer-centric tooling philosophy, is informative if you’re designing horizontally scalable systems.
- Strategy learnings: How to balance protocol-level UX improvements with ecosystem decentralization and long-term sustainability.
Polkadot
Polkadot is a multi-chain interoperability protocol that connects heterogeneous blockchains via shared security and a relay chain.
Why it’s relevant to you:
- For multi-chain infra and middleware: Polkadot is a live laboratory for cross-chain messaging, shared security, and parachain economics.
- For new L1s/L2s: If you’re embedding interoperability or shared security into your thesis, Polkadot’s design and governance journey are essential reference points.
- Strategy learnings: Slot auctions, ecosystem funding, and cross-chain developer incentives at scale.
VeChain
VeChain focuses on enterprise and real-world use cases, especially around supply chain, provenance, and governance.
Why it’s relevant to you:
- For infra with real-world data: VeChain is a concrete example of connecting enterprises, regulators, and public-chain infrastructure.
- For B2B or regulated use cases: Its trajectory shows how to structure partnerships, data flows, and compliance-minded architectures.
- Strategy learnings: Building in markets where blockchain is a means, not the product—especially relevant if you’re infra for logistics, identity, or ESG.
Blockstack / Stacks (STX)
Stacks brings smart contracts and decentralized apps to Bitcoin, anchoring security to the Bitcoin base layer.
Why it’s relevant to you:
- For Bitcoin-adjacent builders: Stacks demonstrates how to extend a conservative base layer with programmable logic without breaking its trust model.
- For security-first protocols: It’s a strong reference on anchoring to a dominant settlement layer while innovating at an adjacent layer.
- Strategy learnings: Ecosystem building in a community that prizes security and stability above rapid iteration.
Relevant DeFi & Open-Finance Ecosystem Projects
We believe DeFi is the liquidity layer of the new financial system. Our DeFi and open-finance exposure cuts across exchange ecosystems, token networks, and user gateways.
Binance Coin (BNB) Ecosystem
Our participation in Binance.US’s seed round and the broader Binance Coin ecosystem speaks to our conviction in exchange-driven networks and application-specific L1s like BNB Chain.
Why it’s relevant to you:
- For DeFi protocols: BNB Chain is a case study in how low-fee, exchange-adjacent networks can catalyze massive TVL and user activity quickly.
- For infra around exchanges: Everything from risk engines to cross-chain bridges and compliance tooling can learn from how these ecosystems scale.
- Strategy learnings: Aligning token incentives with exchange-based distribution and user acquisition.
Mask Network
Mask brings Web3 functionality into Web2 social platforms, enabling encrypted messaging, decentralized apps, and crypto payments on top of existing networks.
Why it’s relevant to you:
- For DeFi at the edge: Mask shows how DeFi and open-finance features can be embedded directly into familiar social surfaces, not separate dApps.
- For UX and onboarding: It’s a powerful reference for “Web3 inside Web2” distribution, especially if you target non-crypto-native users.
- Strategy learnings: Partnering with Web2 platforms, threading privacy and compliance, and introducing crypto user flows incrementally.
Open Finance & DeFi Patterns Across the Portfolio
Beyond individual names, across the more than 300 projects we’ve backed, certain DeFi patterns repeat:
-
Liquidity hubs around major exchanges and L1s
Ecosystems tied to Binance, Coinbase, or high-volume L1s like Avalanche tend to become gravity wells for DeFi activity. If you’re building a new protocol, choosing where to anchor your liquidity is a non-trivial strategic decision—and we’ve seen multiple successful playbooks. -
Composable money legos vs. vertically integrated stacks
Some teams build narrowly focused primitives (e.g., lending, perps, options); others build “super apps” that bundle services. We can help you navigate which approach fits your thesis and regulatory surface area. -
Token design as governance more than just “number go up”
From long-running networks like Polkadot and Stacks to newer ecosystems, token economics that explicitly encode governance and long-term alignment tend to be more resilient than purely speculative models.
Relevant Infrastructure & Digital Rails Projects
We believe that durable blockchain adoption rests on physical and institutional infrastructure: hardware, high-performance computing, exchanges, custody, and data rails.
Canaan
Canaan is a leading provider of specialized hardware for high-performance computing and crypto mining.
Why it’s relevant to you:
- For infra with resource intensity: If your protocol depends on specialized compute, bandwidth, or hardware, Canaan’s path is a reference for supply chains, capex cycles, and industrial partnerships.
- For security-conscious L1s: Hardware realities often shape your consensus and validator sets. We’ve seen the interplay between hardware economics and network decentralization up close.
- Strategy learnings: Navigating commodity cycles, geographic risk, and regulatory scrutiny in hardware-heavy segments.
Coinbase
Coinbase is one of the most recognized digital asset exchanges and a critical on/off-ramp for global crypto users and institutions.
Why it’s relevant to you:
- For distribution and trust: Listings, integrations, and ecosystem programs around exchanges like Coinbase can be decisive inflection points for protocols and DeFi apps.
- For infra partnerships: If you’re building custody tooling, compliance rails, or institutional infrastructure, Coinbase is a key node in that landscape.
- Strategy learnings: What it means to interface with regulated, public-market-facing institutions while still innovating at crypto speed.
Broader Finance Infrastructure & Digital Asset Management
As part of CTH Group, we also operate in high-performance computing and digital asset management (e.g., IDEG products). While these are sister efforts, not portfolio companies, they add context to how we think about infrastructure:
- High-performance computing networks inform our view on scaling, energy, and cost structures for resource-intensive protocols.
- Digital asset management products highlight institutional requirements around risk, compliance, and reporting—useful if you’re targeting professional capital or building DeFi that needs to interoperate with compliant vehicles.
Common Mistakes to Avoid
When teams evaluate our portfolio for relevance, a few missteps repeat:
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Mistake 1: Looking only for exact “clones” of your project
If you’re building a new L2, you might look only for other L2s we’ve backed. But often, your best analogs live in adjacent layers: a high-performance L1, an interoperability protocol, or a DeFi app that solved your current growth challenge years ago.
How to avoid it: Think in terms of archetypes (e.g., “throughput-constrained system” or “liquidity-dependent network”), not only labels like “L2” or “DEX.” -
Mistake 2: Treating the portfolio as a static logo wall
The value is not the list; it’s the network. Underuse of potential partnerships, co-marketing, or integration paths is a common missed opportunity.
How to avoid it: When we talk, come with a short list: “We think we’re most similar to X and Y in your portfolio; we’d love to learn from their playbooks and, if appropriate, explore collaborations.”
Real-World Example
A protocol team building a modular, high-throughput execution layer recently approached us with a simple question: “Which parts of your portfolio actually matter to us?”
We mapped them against three clusters:
- As a high-performance execution environment, Avalanche and NEAR were their closest protocol analogs, offering concrete guidance on validator incentives, sequencing, and developer relations.
- Because they planned to anchor liquidity around a major exchange ecosystem, our experience with Binance.US, Binance Coin, and Coinbase helped them design a multi-venue listing and market-making strategy that didn’t rely on a single exchange.
- They were also resource-intensive, so our work with Canaan and high-performance computing informed their decisions on validator hardware requirements, geo-distribution, and energy considerations.
The result was not a “copy-paste” of any one portfolio company. Instead, we helped them construct a strategy framework—from token economics to go-to-market—that drew on patterns across several networks we’ve backed.
Pro Tip: When you review our portfolio, don’t ask “Who looks exactly like us?” Ask “Who already solved a version of the hard problem we’re about to face—distribution, liquidity, governance, or scaling—and what can we borrow from their playbook?”
Summary
If you’re building in L1/L2, DeFi, or core infrastructure, the most relevant parts of the Fundamental Labs portfolio are not just names like Avalanche, NEAR, Polkadot, VeChain, Stacks, Binance Coin, Mask, Canaan, or Coinbase. They are the patterns those projects reveal about how to design resilient networks, secure liquidity, and navigate the journey from early believers to mass adoption.
We back multi-stage crypto companies with checks from $500K to $50M+, but our edge is in being an insightful partner: helping you see where you fit in the evolving stack, which portfolio relationships can accelerate you, and how to structure your long-term strategy for a better digital society.