European based venture capital (VC) firm Northzone has recently raised more than one billion dollars. The London headquartered firm raised one billion euros in its latest funding. It is expected to invest some of those funds in Web3 as well as in fintechs. The fund will be used to invest in innovative technology, from seed to growth, according to a Tuesday press release.

Northzone has already invested in Web3 companies such as Magic Labs, Gro Protocol and Sunscreen. Wendy Xiao Shadeck said that Web3 was a “core sector” for the venture capitalist. In an interview with The Block, the Northzone partner had said that “Web3 and Web2 will likely start to converge in this fund cycle’s lifetime.” This is the tenth fund cycle for the firm.

Xiao Shadeck said that the venture capitalist firm will continue to consider the Web3 infrastructure space. It will also look at DeFi (decentralized finance) firms such as Gro.

Although Xiao Shadeck didn’t speak of launching their own tokens she said that Northzone would continue to support the firms that might venture into tokens. The partner told the outlet, “I think what’s most likely to happen is that we’ll continue to invest into web3 companies out of our core funds and if they decide to launch tokens we’ll hold them–we’re not at all limited in that way.”

Web3 refers to the third generation of internet services. It is driven by blockchain technology, the technology used by crypto and non fungible tokens (NFTs).

Last July, Northzone had led a $27 million funding round for an authentication platform called Magic Numbers. It is based on the Ethereum blockchain. The VC firm was also part of a $20 million funding round for a decentralized video transcoding platform called Livepeer. This platform is also based on Ethereum, a popular blockchain based software platform, whose digital coin is called ether.

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