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Electric Capital closes $1 billion in funds to back crypto startups, buy tokens – TechCrunch

The excitement about the possibilities in the crypto space has seemingly turned the venture world on its head in recent years, with the big players turning the basic organization of their firms upside down to compete with so-called crypto-native investment firms.

While a plethora of breakout Web3 funds have popped up in recent months, a smaller class of crypto VCs working on their second or third dedicated fund is increasingly poised to capitalize on being early in the ecosystem , by raising mega funds designed to milk every growing opportunity in the Web3 world.

electrical capital announced on Tuesday that they had raised $1 billion for a pair of crypto funds – a $400 million vehicle for equity investments in startups and a $600 million fund designed to invest directly in crypto tokens. That capital raise is pushing the Palo Alto-based fund toward the company of larger companies like Andreessen Horowitz, which closed a $2.2 billion crypto fund last June, and Crypto VC Paradigm, which launched a fund in November raised $2.5 billion.

The Duel Funds follow a $110 million vehicle the company announced in August 2020.

Electric co-founder Avichal Garg says the company has generally made early-stage investments of $1 million to $5 million in pre-seed-stage Series A startups. Otherwise, you’re going to end up making so many investments, and each individual investment doesn’t matter to the fund’s return,” he tells TechCrunch.

Garg and co-founder Curtis Spencer plan to bet on the broader crypto ecosystem, with a particular near-term focus on startups enabling DAOs and infrastructure for NFTs. Some of Electric’s investments include decentralized exchange DYDX, crypto index fund Bitwise, NEAR blockchain, and DAO tooling startup Syndicate Protocol.

Electric Capital closes $1 billion in funds to back crypto startups, buy tokens – TechCrunch Source link Electric Capital closes $1 billion in funds to back crypto startups, buy tokens – TechCrunch

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