Crypto funds (CFs) represent a novel investor type in entrepreneurial finance. CFs intermediate Decentralized Finance (DeFi) markets by pooling contributions from crowd investors and investing in tokenized startups, combining venture- and hedge-style investment strategies. We compile a unique dataset combining token-based crowdfunding (Initial Coin Offering, ICO) data with proprietary performance data of CFs. CF backed startup ventures obtain higher ICO valuations, outperform their peers in the long run, and benefit from token price appreciation around CF investment disclosure in the secondary market. Moreover, CFs themselves beat the market by roughly 2.5% per month. Outperformance is persistent, indicating that CFs generate returns because of their skills, rather than luck. The performance effects for CFs and CF-backed startups are driven by a fund’s investor network centrality.