The annals of the crypto world are buzzing frantically as major players are cashing in on the untapped opportunities that the digital abyss has to offer. By investing on these “crypto native investment firms”, not only firms maintain their hegemony in the online space but open up many doors for innovation to seep in.
The new addition to this list is a crypto asset management firm located in San Francisco, Electric Capital that raised a whopping $1 billion in funds, joining early at the game of breakout web3 funds to sow the seeds of advancement early on. Constituting the grand total of the funds raised, there is a $400 million vehicle for making more equity investments in the up and coming startups and another fund of $600 million that is expected to be invested directly in crypto tokens.
This move of the Palo Alto-based fund joins in on big names of the industry, for instance, crypto VC Paradigm which opened big with a $2.5 billion fund in November. This marks the investment era in the Web3 and Blockchain technology industry taking the gaze of investors from the hot potato that Crypto has consistently been.
Speaking on this phenomenon, Electric Capital co-founder Avichal Garg said, “Founders in Web3 need crypto-native investors who understand the unique support that protocols and Web3 companies require through the inevitable crypto cycles,” The release further said, “We bring deep knowledge in decentralized governance, shipping open-source software, community building, token economics and distributed systems.” Electric co-founder Avichal Garg says,“At that kind of check size on the equity, you have to size your fund appropriately, otherwise you’re going to end up doing so many investments and each individual investment is non-meaningful to the fund return,” he tells TechCrunch.Garg and co-founder Curtis Spencer through their firm which is at a nascent stage, aims to target several checkpoints across the broad spectrum of the crypto ecosystem, ranging from new-age DAOs to the raging arena of NFTs.