Xavier Meegan, former Chief Investment Officer at Chorus One, has launched a crypto Venture Capital (VC) firm Frachtis, a new pre-seed fund valued at US$20 million.

The fund is backed by institutional investors including Theta Capital and crypto-focused entities such as RockawayX and Cyber Fund.

Frachtis aims to support technical crypto-native founders developing decentralized AI, middleware, infrastructure, and consumer applications.

Meegan serves as the fund’s general partner, with assistance from an advisory and investment committee for deal evaluations and portfolio management.

The committee features Brian Crain, CEO of Chorus One; Felix Lutsch, Head of Ecosystem at Symbiotic; Erwin Dassen, Head of Generative AI at Chorus One; and Mel Tsiaprazis, former COO of Bitstamp.

Meegan highlighted the fund’s commitment to leveraging existing blockchain infrastructure to foster innovative crypto-native products.

Frachtis has already made eight early-stage investments, including projects such as Turtle Club, Hyve, and Bless. These focus on DeFi middleware and AI infrastructure.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ The evolution of crypto venture capital toward specialized technical funds

Frachtis represents a growing trend of specialized crypto venture funds emerging from established blockchain companies, as the market matures beyond generalist investors.

The new fund’s launch follows a pattern observed in the broader crypto VC landscape, where expertise-driven funds are becoming increasingly prominent compared to the first wave of crypto investors that lacked technical depth 1.

These specialized funds differ structurally from crypto hedge funds, which typically use “liquid” fund structures allowing investor withdrawals after lockup periods. In contrast, venture funds like Frachtis commit capital for longer time horizons to support project development 2.

This specialization trend is particularly important as technical evaluation becomes critical in an increasingly complex crypto ecosystem. Frachtis is positioning at the pre-seed stage, where technical due diligence is essential but often lacking.

The inclusion of Chorus One leadership on the investment committee highlights how expertise from successful operational companies is being recycled into venture funding, creating a cycle of knowledge transfer within the ecosystem.

2️⃣ Strategic timing for consumer application focus in crypto’s development cycle

Meegan’s statement that “we are in the consumer apps era” reflects a significant transition in the blockchain development timeline, coming after years of infrastructure-building phases.

This assessment aligns with the historical progression of blockchain technology, which began with Bitcoin in 2009, expanded with Ethereum’s smart contract capabilities in 2015, and is now entering a phase where applications can leverage mature infrastructure 3.

The 200% growth in decentralized application users reported in recent data supports this transition to a consumer-focused phase of development 4.

Frachtis’s dual focus on both infrastructure and consumer applications suggests a strategic recognition that while infrastructure development continues, the market is ready for consumer-facing solutions that can achieve mainstream adoption.

This approach parallels venture strategies in traditional technology, where the most successful funds often invest across the stack but increase consumer application exposure as technology platforms mature.

3️⃣ Technical founder advantage in achieving capital efficiency

Meegan’s claim that “crypto-native products that solve real problems for users will become some of the most capital-efficient businesses in the world” highlights a critical factor in crypto venture investing.

The emphasis on technical founders aligns with market data showing that projects with strong technical foundations have demonstrated better performance during market downturns and ultimately delivered stronger returns for early investors 1.

Case studies like Solana and Polygon, which delivered returns of 6,000X and 3,600X respectively for early investors, demonstrate how technically sound projects with efficient implementations can generate exceptional capital efficiency 5.

This focus on capital efficiency marks a maturation of the crypto venture market from the 2017-2021 period when abundant capital flowed into projects regardless of technical merit, toward a more disciplined approach evaluating technical execution capability.

The combination of Frachtis’s pre-seed stage focus and technical evaluation expertise positions it to identify projects with the potential for significant capital efficiency before they become obvious to the broader market.

……