San Francisco-based crypto asset management firm Electric Capital announced the close of a new $1 billion fund—just as crypto prices bounced back Tuesday morning.
The new fund will go toward investments in crypto networks, Web3 protocols and blockchain-enabled businesses, the company said in a release.
The announcement comes just a day after San Francisco-based crypto-native investment firm Hack VC unveiled a new $200 million “crypto seed fund” to invest in early-stage startups in crypto, blockchain and Web3. Hack’s new fund is backed by Sequoia Capital, Fidelity and a16z’s Marc Andreessen and Chris Dixon.
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Crypto has been a hot space for more than a couple of years with venture capitalists, but blockchain and Web3 technologies have become very popular targets recently as investors look for infrastructure to help developers build decentralized applications.
“Founders in Web3 need crypto-native investors who understand the unique support that protocols and Web3 companies require through the inevitable crypto cycles,” Avichal Garg, co-founder of Electric Capital, said in a release. “We bring deep knowledge in decentralized governance, shipping open-source software, community building, token economics and distributed systems.”
Electric Capital will invest between $1 million and $20 million in equity and tokens into technologies such as protocols that support new communities powered by NFTs and DAOs and decentralized Web3 infrastructure and finance products.
After a rocky week, crypto pricing showed strong signs Tuesday morning of bouncing back. Bitcoin hit nearly $45,000, before settling back to well above $43,500. Some in the industry say part of the uptick in price could be because of the ability to move crypto even during the current geopolitical tensions and the volatility of some currencies.
Illustration: Li-Anne Dias.
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