San Francisco-based, Electric Capital, announced on August 3, the close of the second fund of 100 million USD. 90% of all the funds came from institutional investors aiming to move forward with aiding upcoming crypto-based entrepreneurs. In general, all the funding was from universities, nonprofits investing in cryptocurrencies, and related ventures.
What Areas Will the Funds Supply?
Electric Capital has been experimenting with programmable money, and this second funding aims to continue with the exploration. The first area on the same will be on Layer 1 protocols. The base tokens will be a form of money, which can eventually become a non-sovereign way to store value.
Electric Capital is mainly looking into decentralized finance as an alternative gateway for Initial Coin Offerings (ICOs). The firm mentioned that DeFi is actively embraced by users globally. Millions worth of money has been issued into a variety of leading DeFi protocols with programmers utilizing open and vibrant development platforms.
The third area will be community-owned market places, such as Uber to employ tokens for economic advancements. Some can change their systems from traditional markets into decentralized spaces. Others can leverage crypto applications to make services that were previously impossible possible. Next, they will penetrate crypto-related businesses, which can utilize blockchain technology, cryptocurrencies, and other tokens.
According to Electric Capital’s Co-Founder Archival Garg, they enjoy working with early founders from the beginning and many years later. He also mentioned that the company has kick-started products to millions of users and projects from zero to hundreds of engineers. Their mission is to work with founders to scale organizations, build products, cultivate communities, developers’ ecosystems, and others.
More Ventures by Electric Capital
Electric Capital was founded in 2018, directing funds into crypto spaces, blockchains, fintech, and marketplaces. Their investments go into liquid tokens, illiquid tokens, and companies. In the past, notable projects they have been involved in include Maker and Bitwise. It works with other major organizations, such as Coinlist, Anchorage, Oasis Labs, Elrond, Mobilecoin, and more.
Furthermore, the company raised 35 million USD as original funding to invest in cryptocurrencies, including bitcoin and Ether, among other blockchain projects. Both co-founders, Garg and Curtis Spencer, have worked with Facebook in the past.
Spencer aired that a handful of technology companies dominate the space. He noted that most sacrifice privacy, security, independence, and control for efficiency. However, crypto networks have a new way of doing things. He hopes that with the current funding, they can utilize these new principles to develop other platforms that offer users more.