Algo VC Fund Secures $200 Million From Various Investors Led By Arrington XRP Capital
Algo Capital, the financial institution tasked with fostering the Algo ecosystem, has closed its Algo VC Fund at $200 million.
In a press release, Algo Capital said that the fund has surpassed the original target of $100 million.
The fund holds a large stake in Algos and will invest in businesses that are building on Algorand’s technology platform, Algorand blockchain — an open-source public ledger and cryptocurrency payment system that utilizes a Byzantine Agreement message-passing protocol. It will also seek to boost the use and acceptance of the Algo as a means of payment.
Algo is the native digital currency of the Algorand blockchain – an open-source public blockchain based on a pure proof-of-stake consensus protocol which can reportedly support billions of users and transactions.
Algo VC Fund is backed by investors including Arrington XRP Capital, Brainchild, NGC Ventures (the venture arm of NEO Global), Eterna Capital, GSR, Cognitive Blockchain, Rokk3r Inc, Wibson, 11-11 Ventures, DG Ventures, Winslow Strong, Invermaster and many others.
CoinDesk reports that earlier this year, Algorand raised more than $60 million in a token sale conducted on CoinList. It marked the first time Algo entered market circulation – all 25 million Algos for auction, valued at $2.40 each, were sold out in less than 4 hours.
Algo VC Fund’s initial portfolio companies include Securitize, Idex, BlockDaemon, and OTCXN. The portfolio companies work closely with Algorand to leverage its platform for speed, security and feature development, the release said.
Algo Capital said that it currently exploring joint ventures with several venture studios and accelerators, which support hundreds of early-stage startups across the world. Through these partnerships, it aims to bring further investment to blockchain-based businesses in North America, Latin America, Europe, and Asia.
The VC fund is led by blockchain investor David Garcia, entrepreneur-turned-venture capitalist Arul Murugan, and blockchain technology specialist Pablo Yabo.
All commitments to the Algo VC Fund were accepted in Algos, the firm said, adding that Algo is the primary currency for all capital calls. In addition, a portion of the firm’s capital investments comprises of Algos, allowing portfolio companies to make use of the digital currency as a means of payment within the Algorand network.