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: 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