Re7 Capital Launches $10 Million Fund to Propel SocialFi Startups Amidst Growing Momentum

Quick Take

• Re7 Capital has launched a $10 million fund to invest in early SocialFi startups despite the category’s slow traction.
• Luc de Leyritz, Re7 Capital’s partner, stated, “The timing is right: infrastructure, talent, and user behavior are finally aligned.”

Re7 Capital, a decentralized finance-focused investment firm managing over $600 million in digital assets, has initiated a $10 million venture fund aimed at the intersection of social media and decentralized finance (SocialFi). The fund is designed to support around 30 early-stage startups in this emerging sector.

Despite SocialFi's limited traction, Luc de Leyritz asserts it is “the most important category” in crypto investing today, acknowledging the “non-consensus view.” He recently joined Re7 Capital from Cherry Ventures, where he was an investment manager.

While the fund’s size may seem modest, Leyritz explained that Re7 Capital acts as a first-check investor, typically issuing checks between $100,000 and $300,000, allowing support for up to 30 teams with a focused strategy, reserving additional capital for follow-up investments.

“A small fund keeps incentives on carry, not fees, forces discipline, and lets us move fast,” Leyritz emphasized. “If the thesis proves out, we'll scale the next vintage.”

The fund has backing from Re7 Capital and other notable investors, including Lens, a SocialFi platform by Aave's Stani Kulechov, and Dan Romero, co-founder of Farcaster. Over 60% of the fund has already been committed, with a second close anticipated in June.

Why Re7 Capital is Betting on SocialFi Now

Leyritz believes that “the timing is right” for SocialFi investments due to the convergence of various factors, including:

• Infrastructure: The advent of Lens Chain, a Layer 2 blockchain tailored for SocialFi, allows for quick development of standalone social finance applications.
• User Behavior: A shift towards attention-based incentive models on social platforms is emerging, with creators beginning to see new monetization opportunities.

Leyritz expects broader adoption of SocialFi within the next 12-24 months, as more than 200 teams are actively developing projects in this space. The new fund will target startups across various blockchain ecosystems, including those on Lens Chain and Farcaster.

Re7 Capital views this venture fund as a timely expansion, highlighting a structural opportunity in early-stage crypto ventures, driven by the convergence of attention, composability, and capital flows in SocialFi.