Universities hook up $110m crypto-focused fund

Unknown foundations have joined a fund for digital assets closed by Electric Capital to rely on distributed funding models.

Venture firm Electric Capital raised $ 110 million for a cryptocurrency and digital credit fund of LPs, including undisclosed university foundations and nonprofits.

The fund was closed in May 2020 and, in addition to crypto-related projects such as the DerivaDEX trading exchange, is said to have already used up around a third of its body of digital assets including the currencies Bitcoin and Ether.

Electric Capital also pays particular attention to decentralized financing protocols (Defi) and apps that customers can use to lend or borrow money without the need for intermediaries such as banks.

Avichal Garg, co-founder of Electric Capital, told Bloomberg that the new vehicle is expected to be in service for around 10 years.

Garg added: “Bitcoin and Ethereum are a minority in the fund. Our thoughts are more focused on distributed financial protocols and (and) apps that build on these things. "

Electric Capital was founded in 2018 and supports startups of digital assets from the start to the growth phase.

In its investor update for the first quarter of 2020, the company expressed optimism about the growth potential of non-governmental money infrastructures such as Defis given the unprecedented government stimulus that was fed into the global economy after Covid-19.

According to Bloomberg, Electric Capital's first fund attracted $ 35 million from undisclosed LPs at an unspecified date, although, according to an official filing, the company intended to raise $ 175 million in November 2019 for a vehicle called Electric Capital Venture Find Fund I.

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