Key Takeaways
- Electric Capital has closed its second fund, raising $110 million to invest in early-stage blockchain-enabled businesses and cryptonetworks.
- The fund will focus on layer 1 protocols, decentralized finance and community-owned networks, and crypto-enabled businesses and marketplaces.
- Electric Capital is partnering with renowned university endowments and philanthropic foundations for its second fund.
- This reflects the growing importance of blockchain technology in the finance and technology sectors, and the increasing interest in cryptocurrencies as a potential investment opportunity.
Venture firm Electric Capital has closed its second fund, raising $110 million to invest in early-stage blockchain-enabled businesses and cryptonetworks. The fund will focus on three areas: layer 1 protocols, decentralized finance and community-owned networks, and crypto-enabled businesses and marketplaces.
Electric Capital was founded by Avichal Garg and Curtis Spencer, who both have executive experience at Facebook and Google, and are investors in a variety of technology companies such as Airtable, Boom, Cruise, Figma, Newfront Insurance, and Notion.
The firm is known for compiling code, profiling nodes, analyzing blockchains and open source projects, and writing software to help portfolio companies understand their ecosystems.
Garg said that Electric Capital supports early founders from their first investment and enjoys working closely with them for many years. He added that the firm helps founders with scaling their organizations, building products, cultivating communities and developer ecosystems, and more.
Electric Capital has partnered with renowned university endowments and philanthropic foundations for its second fund, which will continue to focus on “programmable money.”
The firm’s founders have invested in crypto companies such as Anchorage, Bitwise, Celo, Coda, Derivadex, Elrond, Mobilecoin, Oasis, and NEAR.
The fund’s focus on layer 1 protocols, decentralized finance, and community-owned networks, and crypto-enabled businesses and marketplaces reflects the growing importance of blockchain technology in the finance and technology sectors.
As the market for cryptocurrencies continues to expand, Electric Capital is positioning itself to take advantage of emerging opportunities in this space.
Curtis Spencer points out: “Today, a handful of big technology companies dominate the technology landscape. Everything has a price: in exchange for efficiency, we gave up platform independence, control, transparency, and our privacy.
“These are the exact dimensions on which cryptonetworks are better than legacy systems. Cryptonetworks represent a fundamentally new way of writing software. With our new fund, we hope to facilitate the building of new platforms based on these principles,” Curtis added.
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