Electric Capital Raises $1 Billion To Launch Crypto Venture, Token Funds

The capital raise brings the firm into a bigger playing field alongside major crypto funds such as Andreessen Horowitz, Paradigm and10T Holdings

article-image

Avichal Garg, Electric Capital founder and managing partner | Source: TechCrunch/"775105076GB00193_TechCrunch" (CC license)

share

key takeaways

  • The firm will focus on DAOs, NFTs, DeFi, decentralized infrastructure and accessibility in Web3
  • “The Web3 economy built on top of the programmable money stack will be one of the defining disruptions of the 2020s,” Avichal Garg, Electric Capital founder tweeted

Crypto venture capital firm Electric Capital has raised $1 billion, its largest fundraise to date, to deploy capital to Web3, NFT and DeFi projects. 

“The Web3 economy built on top of the programmable money stack will be one of the defining disruptions of the 2020s,” Avichal Garg, Electric Capital founder and managing partner, tweeted Tuesday. 

The lofty $1 billion haul is earmarked for two funds: a $400 million venture fund and a $600 million token fund. The new vehicles mark the firm’s third and fourth funds, respectively.  

Electric Capital’s second fund was $110 million in August 2020. At the time, it planned to focus on investing in startup equity, crypto tokens and hybrids of the two.

The firm will focus on five key trends within the new funds: DAOs, NFTs (non-fungible tokens), DeFi (decentralized finance), decentralized infrastructure and accessibility in Web3, which will define this decade, Garg said. The capital will be invested in $1 million to $25 million increments for companies and token-enabled networks.

The fundraise brings the firm into a bigger playing field alongside venture capitalists in the space with major crypto funds such as Andreessen Horowitz, Paradigm and 10T Holdings.

As prominent firms deploy large funds, venture capitalists and investors alike seem to show no signs of slowing down. Last month, billions of dollars flowed into the crypto, including a notable amount from Luna Foundation Guard with its $1 billion private token sale. 

“We believe that crypto enables a parallel, programmable financial system,” Electric Capital wrote in a post. “Now, a new economy is developing on top of the programmable money stack — DeFi enables permissionless access and innovation, NFTs are digital-native assets, DAOs create a way for communities to allocate resources, Decentralized Infrastructure provides alternatives to centralized tooling, and more.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).jpg

Research

With $13B in tokenized assets, strong institutional partnerships, and a clear first-mover advantage in the RWA space. The platform's methodical approach to regulatory compliance, coupled with its hybrid public-private architecture, positions it uniquely to capture significant market share in the emerging tokenization landscape. While current fee generation primarily stems from metadata transactions, the planned launch of Figure Markets, major exchange listings, and comprehensive market-making initiatives in 2025 could serve as powerful catalysts for growth.

article-image

Perena is built on the premise that as stablecoins proliferate, liquidity could fragment, and stablecoins aren’t useful if they aren’t liquid

article-image

From hackathons to trading tools and DAO governance, AI agents are redefining how we build and innovate

article-image

CME’s large bitcoin contracts are so big that investors are turning to micro bitcoin contracts

article-image

The third-largest stablecoin is going multichain for the first time in its seven-year history

article-image

Nano Labs’ news release notes confidence in bitcoin being “a reliable store of value amidst its rising global adoption”

article-image

Several big companies report third quarter earnings this week, likely moving markets