Superstate Raises $14M to Create Tokenized Investment Funds

In a press release shared with Rarity Sniper, asset management firm Superstate announced that it has raised $14 million in a Series A funding round. The money will go to expanding its team, providing private funds for institutional investors, and creating a framework for compliant, tokenized, and publicly registered investment funds.

Superstate’s financing round was co-led by Distributed Global and CoinFund, with participation from a plethora of companies, including Breyer Capital, Galaxy, Arrington Capital, Road Capital, CMT Digital, Folius Ventures, Nascent, Hack VC, Modular Capital, and Department of XYZ. Superstate previously had a seed round in June 2023 for $4 million.

Superstate CEO and Co-Founder Robert Leshner said that the future of investments is programmable, compliant, and transparent. He added that while tokenized funds currently exist, they are often on private blockchains or serve offshore clients. Superstate’s goal is to bring on-chain advantages to U.S. investors.

The company has already one tokenized fund in the works: a short-term government bond fund that has secondary ownership records tracked on the Ethereum blockchain. This method increases the transparency of bond ownership, transparency being a calling card for Web3 and blockchain proponents.

In addition, Superstate’s funds provide benefits to investors that include investor-directed ownership through self-custodied assets, next-generation utility through automation and new use cases, and transparent, embedded compliance, which comes through the very nature of the blockchain itself.

CoinFund Founder and CEO Jake Brukhman said in a statement that Superstate’s products bridge the gap between high-quality compliant financial products and the massive advantages and innovation that decentralized finance offers to the traditional finance world.

Superstate: Crypto-Native Institutional Investors the Target

Rarity Sniper was fortunate enough to ask Superstate some questions about their latest fundraise and what it plans to do with the money, along with who it is targeting for its upcoming funds. Here is the interview in full.

If you can reveal them, what type of tokenized funds do you plan to create with this financing?

Alongside a publicly registered fund, which we have submitted a draft prospectus to the SEC for our plan to create private funds for institutions. We do not have a set number of funds that we intend to offer over time. We will listen to the market needs and build products that are needed.

For now, what audience are you targeting — and will this grow in the future?

We are initially targeting a diverse group of crypto-native institutional investors, including family offices, hedge funds, and other financial institutions seeking modernized, efficient investment vehicles that leverage the benefits of blockchain technology.

We intend to broaden this audience to traditional investors as our product and regulatory climate adjusts in the coming months.

What does it mean to have the support of all these companies that contributed to the financing round?

We are thrilled to have the support of such solid investors as we move forward bringing our products to market.

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