Former Chorus One executives launch a $20 million crypto-native pre-seed fund

[Coin World] This is a snippet from a newsletter. To read the full version, please subscribe. Former Chorus One Chief Information Officer Xavier Meegan is launching a $20 million crypto-native pre-seed fund, we have learned exclusively. At Frachtis, Meegan serves as General Partner, and the investment and advisory committee includes four others, including Brian Crane and Felix Lutsch from Chorus One. The fund is headquartered in Lisbon, Portugal.

“There are five people around our fund now, and we all have experience in operating crypto native businesses, which I think is very rare. Only a few funds do this in this field. Additionally, we also have experience in operating blockchain infrastructure,” Meegan told me.

He said they raised funds in the past 12 months and pointed out that crypto is currently in the “consumer application era.” The next big winner in crypto will be the applications that utilize our existing infrastructure.

He told me that the era of infrastructure has “ended”. He added that now is the time to focus on building for the future of crypto, rather than launching more L1s and L2s. Instead, he believes that demand is focused on consumers and mobile applications.

Although he is also interested in the intersection between AI and crypto, he added that he is closely watching AI agents.

“One major issue, and we have another argument, is that these agents need faster and more contextualized data. Therefore, we need to build this infrastructure. Perhaps these agents need certain permissions to access certain things; otherwise, there will be many security risks,” he said.

“As more and more things go live in crypto, personalization, retention, and loyalty for certain types of applications powered by AI will become increasingly important. I believe this will be one way for some of these teams to win: by using AI to enhance your applications, improve usability, and boost user engagement.”

Meegan told me that now is a “good time” to invest. For founders, raising funds has always been difficult, but this has brought unexpected benefits, forcing founders to strengthen their ideas.

He expects that in the next 12-18 months, LPs will return and become more active.

“Everything we invest in… has a long-term thesis, and I’ve talked to many teams… I believe [will] win in the long run. In fact, we have a framework for doing this and how we analyze these founders and teams, which we have developed over the years,” Meegan added.

So far, Frachtis has invested in eight projects at the pre-seed and seed stages, including Turtle Club and Hyve. They have just begun.