{"id":19642,"date":"2022-03-01T19:34:52","date_gmt":"2022-03-01T18:34:52","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=19642"},"modified":"2022-03-01T19:34:59","modified_gmt":"2022-03-01T18:34:59","slug":"crypto-focused-vc-firm-electric-capital-raises-1b-in-new-funding","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-focused-vc-firm-electric-capital-raises-1b-in-new-funding\/","title":{"rendered":"Crypto-focused VC firm Electric Capital raises $1B in new funding"},"content":{"rendered":"\n
Electric Capital, a Bay Area investment <\/a>firm, announced a combined $1B\u00a0raise for the development of two new funds on Tuesday, March 1, 2022: a $400M\u00a0venture fund and a $600M\u00a0token fund.<\/h5>\n\n\n\n
\"Crypto-focused<\/figure>\n\n\n\n

Electric Capital's plans <\/h2>\n\n\n\n

It's a step higher from Electric's previous fund, a $110 million vehicle unveiled in August 2020, and cements the firm's status as one of crypto's venture kingmakers \u2014 but with a different strategy. Andreessen Horowitz (a16z) and Paradigm have both announced multibillion-dollar investments \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>in recent months.<\/p>\n\n\n\n

The funds will focus on decentralized finance (DeFi), non-fungible tokens<\/a> (NFTs), decentralized autonomous organizations (DAOs), layer 1s, and blockchain infrastructure, according to a press statement.<\/p>\n\n\n\n

Curtis Spencer and Avichal Garg, co-founders of the funds, said in an interview that while the funds will evaluate a wide range of investments, they will focus on projects with a strong community focus and fair launch token allocation.<\/p>\n\n\n\n

\u201cIt used to be with token allocations it was very insider-heavy, and now we\u2019re seeing the inverse of that \u2013 60%-65% of token allocated to the community, which is how it should be,\u201d said Garg. \u201cPeople are playing with these token-economic incentives, where if you\u2019re willing to do what\u2019s right for the network \u2013 if you\u2019re willing to be locked up for four years or something \u2013 you get disproportionate rewards. That presents an opportunity for long-term investors<\/a>.\u201d<\/p><\/blockquote>\n\n\n\n

Electric Capital was created by Spencer and Avichal Garg in 2018 and has since invested in Bitwise, dYdX, Gitcoin, Immunefi, NEAR, and Syndicate, among other projects. <\/p>\n\n\n\n

Paradigm's $2.5 billion funds<\/a>, FTX's $2 billion venture fund, and Pantera Capital's $1 billion funds are among the largest crypto funds launched in recent months.<\/p>\n\n\n\n

Sequoia Capital stated last month that it will launch the first-ever crypto sector-specific fund. The Sequoia Crypto Fund, which is estimated to be worth $500 million to $600 million, will mostly invest in tokens<\/a>.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Electric Capital, a Bay Area investment firm, announced a combined $1B\u00a0raise for the development of two new funds on Tuesday, March 1, 2022: a $400M\u00a0venture fund and a $600M\u00a0token fund. Electric Capital’s plans It’s a step higher from Electric’s previous fund, a $110 million vehicle unveiled in August 2020, and cements the firm’s status as […]<\/p>\n","protected":false},"author":13,"featured_media":19652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[7766,5679,6064,5615],"class_list":["post-19642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-electric-capital","tag-funding-2","tag-funds-2","tag-tokens-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/03\/www.coinscreed.com-9.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/19642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=19642"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/19642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/19652"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=19642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=19642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=19642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}