Algo Capital has raised $200 million double its $100 million goal for its venture capital fund.
Algo Capital has raised $200 million for a VC fund focused on firms that will help drive adoption of the Algo token for payments
Algo Capital has raised $200 million doubleits original goal for its venture capital fund.
According to a news release shared with Cointelegraph on Aug. 27, the new fund will invest in businesses helping to build infrastructure for the Algorand blockchain an open-source public ledger andcryptocurrencypayment system that utilizes a Byzantine Agreement message-passing protocol.
The fund will also be investing in businesses focused on acceleratingthe adoption of the platforms native token, Algo, as a means of payment.
As previouslyreported, Algorand was founded by Silvio Micali, a cryptographer and Turing Award winner who is currently a professor at the Massachusetts Institute of Technology.
Algo Capitals news release states that the Algo VC fund has sealed backing from an international group of financial and blockchain industry investors, including Brainchild, NGC Ventures (the venture arm of NEO Global,)Eterna Capital, GSR, Cognitive Blockchain, Rokk3r Inc., Wibson, 11-11 Ventures, DG Ventures, Winslow Strong, Invermasterand others.
The fund which reportedly holds a large stake in Algos has revealed that its initial portfolio companies include security token issuance platform Securitize, decentralized exchange Idex, blockchain infrastructure and middleware orchestration platform BlockDaemon, and institutional exchange and cross-custodian settlement platform OTCXN.
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 fund were reportedly accepted in Algos rather than in U.S. dollars, with the token being used as the primary currency for all capital calls. Moreover, a portion of the funds capital investments comprises Algos in order to enable portfolio firms to use the digital token as a means of payment within the Algorand network.
Algo Capital says it is pursuing joint ventures with various international accelerators and venture studios to further investment in blockchain enterprises across North America, Latin America, Europeand Asia.
As reported this summer, Algorand raised more than $60 million in its Algotoken saleon financial services platform CoinList. This capital was in addition to the$66 million the firm had raised over the past year from investors, including VC firms Union Square Ventures and Pillar Venture Capital.
In light ofits development of aproof-of-stakeprotocol and aspiration to host an app development platform for enterprises, Algorand is considered by some to be theclosest competitorto Ethereum (ETH).
Ethereum is lot vulnerable and rigid, Algorand might turn out to be a better option.
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