Electric Capital has just been able to raise a whopping $1 billion in funding.
It has been said that $400 million will be going towards equity investments and $600 million will be allocated for crypto tokens.
The Growing Excitement of Web3 Funds
According to the story by TechCrunch, a lot of enthusiasm has surrounded the growing uptrend when it comes to how major players and their firms are looking towards crypto native investment firms.
It can be said that the large sum raised within the funding points out the massive interest that surrounds crypto.
Although a number of different web3 funds have started to come out over the last few months, an even "smaller class of crypto VC firms" are now working on their second or third dedicated funding.
Electric Capital Raises $1 Billion in Funding
The funding is usually for those that are eager to cash in on the early stages of the web3 ecosystem and milk the opportunities before they even become widespread. The mega funds are designed to take advantage of the rising opportunities that the world of web3 is offering.
According to a report by Electric Capital, the company was able to close a massive $1 billion in funding. $400 million of that budget is directed towards "making equity investments in startups" while the other $600 is directed towards investing in crypto tokens.
Other Large Fundings Raised to Invest in Crypto
This particular capital raise is pushing the whole Palo Alto-based fund directly towards the realm of other larger firms just like Andreessen Horowitz, which was able to close a massive $2.2 billion crypto fund in June 2021.
Another example is the crypto VC paradigm, which was able to debut with a massive $2.5 billion fund back in November. Electric Capital's funds currently follow a massive $110 million vehicle which was initially announced back in August 2020.
$1 Million to $5 Million Alloted to Pre-Seed and Series A Startups
Avichal Garg, the co-founder of Electric, announced that the early-stage firm has been able to make certain investments amounting from $1 million to $5 million when it comes to the pre-seed stage to the Series A stage startups.
Garg gave a statement to TechCrunch noting that at when it comes to equity, the fund should also be sized appropriately. If not, this will then end up doing a lot of investments that might not give meaningful return to the fund.
Read Also: Polkadot Founder Gavin Wood Donates $5 Million to Ukraine After Requesting for DOT Address
Electric Capital Plans to Invest in Bitwise, DYDX, NEAR, and More
Curtis Spencer, the co-founder of Electric Capital, and Garg, plan to make different bets when it comes to the much broader crypto ecosystem along with a near-term focus when it comes to DAO enablement and NFT infrastructure.
Certain investments by Electric also include DYDX, a decentralized exchange, and also a crypto index fund known as Bitwise and the NEAR blockchain as well as DAO tooling startup called Syndicate Protocol.
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This article is owned by Tech Times
Written by Urian B.
