Electric Capital raises $110 million for Blockchain projects
Electric Capital recently announced to have raised more than $100 million in funding from investors and will be contributing to blockchain projects, such as decentralized finance and Layer 1 protocol. Electric Capital is one of the companies working on bringing the crypto world and fintech closer together.
The funding round was formed of undisclosed institutional investors including university endowment. Over $110 million was raised for the Palo Alto-based fintech that apart from other services offers non-custodial exchanges such as Maker and Bitwise.
The firm plans to divide the funds among startups in the blockchain industry with grants ranging from $1 million to $6 million for each. The co-founder of the company Avichal Garg revealed that the company is looking to bridge the cryptocurrency-fintech gap and disrupt relevant industries using lending instruments.
Garg confirmed that the firm has already made investments in the fields of Layer 1 protocol and the decentralized ecosystem and stressed that this fund is meant to increase its engagement in the cryptocurrency investment sphere. And it seems that his vision has been evolving rather successfully as the fund has already had 30% engaged in projects.
Decentralized finance is now gradually regaining the interest of institutional investors. The DeFi market grew from $2 to $4 billion in just weeks proving its rocketing popularity. The firm's representatives said that DeFi is especially attractive to early adopters due to its earning potential.
Garg also reported that Electric Capital sees community-owned markets and decentralized marketplace that is built on the blockchain as possible areas for future investment. He strongly believes that the potentials they have seen for the industry are immense.