WebN Group, the blockchain and Web3 incubator backed by billionaire Alan Howard, is closing its doors after several years of seeding digital infrastructure startups, according to a person familiar with the matter. The move comes amidst a challenging period for crypto-exposed firms and follows a year of significant volatility in digital asset markets.
The incubator’s investments included tokenization specialist KAIO (formerly Libre), crypto staking shop Twinstake, blockchain infrastructure firm TruFin, and zero-knowledge proofs startup Geometry. WebN also received an undisclosed investment in 2023 from Nomura’s crypto partnership, Laser Digital.
While WebN is ceasing operations, the decision does not signal a retreat from digital assets by Howard, the founder of Brevan Howard. A source close to the situation stated that Howard “has long been convinced that blockchain technology would be used in traditional markets.” The incubator itself was described as having “successfully completed its mission.”
The closure coincides with a period of recalibration for Brevan Howard’s crypto-focused investment strategies. The firm’s digital asset fund experienced a loss of nearly 30% in the past year, according to a report in the Financial Times, following gains of 52% in 2024 and 43% the year before. This performance mirrors a broader trend of hedge funds reducing their exposure to Bitcoin and other cryptocurrencies.
Data from Bloomberg and CF Benchmarks indicates that Brevan Howard has significantly trimmed its positions in Bitcoin exchange-traded funds (ETFs), cutting holdings of BlackRock’s iShares Bitcoin Trust by approximately 85%. This reduction in exposure suggests a more cautious approach to the asset class, even among firms that previously demonstrated strong conviction.
The changes at Brevan Howard extend beyond WebN’s closure and portfolio adjustments. saw the departure of Gautam Sharma, the CEO of BH Digital, who had been overseeing the firm’s crypto investments. Brevan Howard spun out Nova, a hedge fund previously run by Kevin Hu, an investor from Dragonfly, as part of an acquisition.
Despite these shifts, the source emphasized that Brevan Howard “isn’t scared off by temporary volatility” and “remains bullish on digital assets.” The firm continues to maintain a venture capital business focused on the broader opportunities within the digital asset space.
The closure of WebN reflects a broader cooling in the venture capital market for crypto startups. After a period of exuberant growth fueled by low interest rates and abundant liquidity, the industry is now facing a more challenging funding environment. Rising interest rates, macroeconomic uncertainty, and increased regulatory scrutiny have all contributed to a decline in venture capital investment in the sector.
The incubator model, while popular during the bull market of , has come under pressure as startups struggle to achieve profitability and navigate a more complex regulatory landscape. The need for sustainable business models and clear regulatory frameworks is becoming increasingly critical for the long-term success of blockchain and Web3 projects.
WebN Group did not respond to requests for comment, and Brevan Howard declined to comment on the matter. The closure, however, underscores the evolving dynamics within the digital asset industry and the need for both established financial institutions and venture capital firms to adapt to a changing market environment.
The impact of WebN’s closure on its portfolio companies remains to be seen. KAIO, Twinstake, TruFin, and Geometry will now need to navigate the market independently, seeking further funding and demonstrating their ability to generate revenue and achieve sustainable growth. Their success will depend on their ability to innovate, adapt to changing market conditions, and build strong relationships with customers and partners.
