Lightspeed Faction

Lightspeed Faction

Lightspeed Faction launched in 2022 as a specialized vehicle within Lightspeed Venture Partners, the $25B+ venture firm. The unit was founded by Banafsheh Fathi, who previously led crypto investments at Lightspeed, alongside partners Derek Colla and Samuel Harrison. Lightspeed Faction operates independently in sourcing and decision-making but draws on Lightspeed's operational platform and institutional LP base. Strategy focuses on early-stage crypto equity and token investments, targeting layer-1 protocols, scaling solutions, zero-knowledge infrastructure, and developer tooling. Portfolio companies include the layer-1 blockchain Sui (per the firm, 2022), scaling protocol Eclipse, and the zero-knowledge prover platform Gevulot (per TechCrunch, 2024). The firm also uses liquid tokens for treasury management and strategic staking. Geographic coverage spans North America, Europe, and Asia, with an emphasis on US-based and EU-based protocol teams. Fund size and total AUM are not publicly disclosed. The team numbers roughly 10 investment professionals based primarily in San Francisco. Lightspeed Faction does not operate separate philanthropic vehicles publicly identified as distinct from Lightspeed Venture Partners' broader charitable activities. In February 2024, the firm raised $120 million for its second fund dedicated to early-stage crypto and blockchain companies (per TechCrunch, February 2024). Lightspeed Faction's structural differentiator lies in its hybrid model: it is a thematic, dedicated fund inside a large multi-stage venture platform. This gives portfolio companies access to Lightspeed's global network while maintaining crypto-specific expertise and token-market agility — a structure relatively rare among traditional franchise spinouts.