Digital asset investment firm Cambrian Asset Management landed an oversubscribed $4.2 million seed equity round to develop its quantitative, data-driven approach to mitigating risk and maximizing returns in volatile crypto markets.
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Martin Green, co-CIO and CEO of the Mill Valley, California-based firm, told Crunchbase News that the seed equity round was increased from an original target of $3 million.
Lead equity investors included Howard Morgan, the Charles Johnson Family Office, the family office of the founding family of Franklin Templeton Investments; Dennis Phelps and Kevin Ryan. Another 20 equity and angel investors that participated in the round as well.
The firm started researching and collecting data on crypto markets three years ago to come up with its model that seeks to generate exceptional risk-adjusted returns while limiting downside risks, Green said.
“We took that research and started inventing until we came up with a model, and now we have a running strategy with live capital and 20 months of trading under our belt,” he added. “We have seen how things have gone and the iterations we needed to make.”
Funds from the equity raise will be used for technology infrastructure, operations, and research and development, Green said.
Cambrian is now working to build relationships with family offices and institutional investors who are looking for this type of strategy, which Green said is unique from just buying and holding.
“We believe the market and institutional investors are looking at digital assets and innovation in the space in the macro context,” he added. “They are looking at things with scarcity, such as real estate, gold and some technology companies, and we are excited for the pipeline of opportunities that are coming.”
Illustration: Li-Anne Dias