Electric Capital's new $ 110 million VC fund is 90 percent institutional

Electric Capital's new $ 110 million VC fund is 90% institutions - Electric Capital's second fund a 110M Seed and Series A fundCrypto Venture Capital (VC) firm Electric Capital closed its second fund at $ 110 million. Of the money raised, 90% is made up of institutional capital. "Early adopters with long-term prospects are now significantly above zero and now many people involved in the industry are realizing this," said Electric Capital co-founder Avichal Garg.

The goals

The new fund includes multiple internationally recognized universities whose details have not been disclosed, Garg said. This represents a potential driver of crisis for traditional investors who are becoming increasingly crypto-oriented.

Electric's new fund will invest in startup stocks, crypto tokens, or a hybrid of the two. Controls will range from $ 1 million to $ 10 million and will focus on the seeds and rounds of Serie A.

The company's first round raised $ 35 million, Garg said in agreement with co-founder Curtis Spencer. The new fund's initial investments include DerivaDEX on the equity side; investments in Celo and NEAR basic level tokens; and available liquidity of bitcoin (quotation BTC), Ether (ETH) and Maker (MKR).

The second fund will continue to hold Electric's focus on the three objectives represented by Level 1 protocols, decentralized finance (DeFi) and cryptocurrency-enabled assets.

Electric Capital

Electric Capita VC's founders are serial entrepreneurs, former executives of Facebook (Facebook Inc. FB) and Google (Alphabet Inc. GOOG, GOOGL), and investors in companies such as Airtable, Boom, Cruise, Figma, Newfront Insurance, Notion, and others.

The company is a partner of leading universities and world-renowned philanthropic foundations for its second fund. Silicon Valley residents Garg and Spencer began investing in crypto startups in 2016 after taking an early interest in bitcoin mining in 2011.

After the VCs began to grow consistently during the latest bull run, the two decided to make the company official, founding Electric in early 2018. Current investments include Anchorage, Bison Trails, Bitwise, Coda, Elrond, Mobilecoin. and other.

As for the factor that sparked institutional interest this time around, Garg said that macroeconomic conditions played an important role. "The input that gave it a boost was the money printing that took place in March," he said.

Spencer added: “Today, a handful of large tech companies dominate the tech landscape. Everything has a price: in exchange for efficiency, we have given up on platform independence, control, transparency and our privacy. These are the exact dimensions on which crypto networks are better than legacy systems. Crypto networks represent a fundamentally new way of writing software ”. The Financial Times reported in April that VC giant Andreessen Horowitz (a16z) was aiming for $ 450 million for its second cryptocurrency fund.