# Lightspeed Faction

Lightspeed Faction is an Asset Manager based in Palo Alto, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Palo Alto, United States
- **Region:** North America
- **Address:** San Francisco, CA, United States
- **Founded:** 2022
- **Assets under management:** Undisclosed
- **Website:** lightspeedfaction.com

## Regulatory record

- **CRD number:** 318821
- **SEC file number:** 801-126648
- **Registration status:** Registered
- **Reports private funds:** Yes
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/318821

## About

LIGHTSPEED FACTION is an SEC-registered investment adviser in Palo Alto, CA, registered since 2022. The firm manages approximately $433 million in regulatory assets. It has 8 employees and 6 investment advisers.

## Sectors

- Crypto & Web3
- Infrastructure
- Enterprise Software
- AI/ML

## People

- Banafsheh Fathi — Partner
- Derek Colla — Partner
- Samuel Harrison — Partner

## Questions

### Who runs investment decisions at Lightspeed Faction?

Banafsheh Fathi, partner and co-founder, leads the firm alongside partners Derek Colla and Samuel Harrison. Fathi previously led crypto investing at Lightspeed Venture Partners. The team operates with investment autonomy from the parent firm (per the firm's public statements).

### How does Lightspeed Faction source proprietary deal flow?

Lightspeed Faction generates deal flow through direct outreach to protocol teams at conferences and hackathons, as well as introductions from Lightspeed Venture Partners' broader network. The firm is known for being developer-centric and invests at the infrastructure layer.

### Which sectors does Lightspeed Faction explicitly avoid?

The firm avoids consumer-facing crypto applications such as NFT marketplaces and play-to-earn games, concentrating instead on core infrastructure including layer-1 blockchains, zero-knowledge proofs, and developer tools (per press interviews with partners).

### Does Lightspeed Faction participate in fund commitments or only direct deals?

Lightspeed Faction makes direct equity and token investments only. It does not commit to external crypto funds as a LP. The firm's capital is managed through a single dedicated vehicle.

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- [SELECT INVESTMENT SOLUTIONS, LLC](https://altss.com/profile/select-investment-solutions-llc)
- [AXQ Capital, LP](https://altss.com/profile/axq-capital-lp)

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Last updated: 2026-06-03T20:00:00.000Z

Canonical page: https://altss.com/profile/lightspeed-faction

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