Electric Capital raises $1 billion for the establishment of two new cryptocurrency funds

Electric Capital, a crypto-focused venture capital firm, has secured $400 million for its third early stage fund and $600 million for a digital token fund.

Why is this significant: Raising massive pools of funds to invest in crypto is becoming more common as the industry continues to grow — despite regulatory uncertainties and persistent concerns about frauds.

Among the lines: Electric's pair of funds highlights an emerging fact in crypto investing: once their token networks are established, many firms and projects may never receive traditional venture financing beyond the early stages.

  • At that moment, acquiring tokens may be the only method for an early investor to continue investing—and to continue purchasing the company's most valuable assets.
  • "There are seed and Series A firms that have not progressed up the S-curve," Electric Capital managing partner Avichal Garg explains, referring to the premise that startups can experience inflection points that result in rapid growth prior reaching maturity.
  • "Therefore, if you can locate high-quality investments, you should hold them because they have not risen up the S-curve."
  • Additionally, Sequoia Capital recently announced the launch of a token-focused fund.

Concerning Electric Capital

Electric Capital is a venture capital firm focused on Web3 protocols, cryptocurrency networks, and enterprises powered by blockchain technology. Electric's significant expertise in community governance, token economics, cryptography, and distributed systems is used by the founders. Electric collaborates with founders on governance framework development and is an active participant in governance, token economic design, liquidity providing, and bootstrapping networks. Electric Capital's yearly Developer Report is the de facto industry standard for gaining a comprehensive overview of developer ecosystems across cryptocurrency networks. Among the companies in which Electric Capital invests are Bitwise, dYdX, Frax, Gitcoin, Immunefi, Iron Fish, NEAR, Rabbithole, Syndicate, and Tokemak.

Please visit electriccapital.com for additional information.

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