In a rare and remarkable event, a tech start-up made $10 million on its $3.9 million bet with a hedge fund, according to a report published by Next Big Futures.
The fund, called Bluefin Capital, was one of the biggest funder of venture capital funds during the first half of this year.
Bluefin Capital is a venture capital fund that was started by billionaire Mark Cuban, who has made headlines for his deep ties to the tech industry and his advocacy for open borders.
Bluefin is the biggest VC firm in the U.S. with a $5 billion market cap.
In a press release announcing the venture, Bluefin said it invested in an investment fund called TechStars, which invests in tech start up companies that “provide transformative technology that can help to solve some of the world’s most pressing problems, including the need for sustainable energy and a more sustainable economy.”
Bluefin’s investment comes at a time when many companies are facing criticism from tech giants for not following through on their commitment to invest in start-ups.
Earlier this year, Twitter announced it would be scaling back its investments in start up firms, and Facebook has already cut $300 million from its $2 billion investment fund in Y Combinator.
But Bluefin’s announcement could help the tech sector and the broader industry to regain some of its momentum.
In the report, Bluefins CEO, Steve Tannenbaum, said that after his firm invested in TechStars and other tech start ups, “Bluefin became the largest VC fund in the world to invest into these tech companies in 2017.
We made a bet that they could be the next billion dollar tech companies.”
The fund has also made headlines recently for its role in the sale of the popular Instagram video platform to Facebook for $1 billion.
The company has since gone on to raise more than $4 billion in funding.
The TechStars fund is the latest venture capital firm to make the move into the burgeoning start-Up space.
Last month, the fund announced it had made a $50 million investment in a start-Ups company called DigitalCandy, which is working on a smart home platform that will allow users to control devices like lights, thermostats, and cameras remotely.