Blockchain firm Venom Foundation and Abu Dhabi-based investment manager Iceberg Capital Ltd on Wednesday launched a $1 billion crypto venture fund and said it was leading a $20 million funding round in virtual world platform Nümi Metaverse.

The fund, called Venom Ventures Fund (VVF), aims to invest in early-stage startups focused on payments, asset management, banking services and gaming on Web3, a much-hyped vision of a future internet built on blockchain.

The launch comes at a time when funding for crypto startups has slowed following the global risk off mood and a series of crypto blowups that culminated in the high-profile downfall of FTX and shook investor sentiment.

Cryptocurrencies have crept into the new year, licking their wounds with bitcoin steady at $17,421, after tumbling 64% in 2022.

Venom Ventures fund is chaired by former BlackRock chief investment officer Peter Knez, and will be operated by investment firm Iceberg Capital that is regulated by Abu Dhabi Global Market - the emirate's international financial center.

(Reporting by Medha Singh in Bengaluru; Editing by Shinjini Ganguli)