Crypto Venture Firms Secure Over $2.2 Billion in August

In August, cryptocurrency venture firms secured over $2.2 billion, according to The Block, citing PitchBook.

Analysts highlighted ParaFi Capital with $120 million, Borderless Capital with $100 million, Hack VC with $77 million, and Robot Ventures with $75 million.

Experts noted that several funds are actively seeking new capital this year. Dragonfly Capital aims to raise $500 million and has already gathered half of this amount.

Many firms are focusing on early-stage startups, indicating an optimistic view of the industry’s potential in a “challenging market.” This aligns with Borderless Capital’s DePIN Fund III ($100 million).

The firm’s first fund of $10 million focused solely on supporting the Helium startup. The second fund ($25 million) invested in over 35 DePIN projects, achieving a twofold return on investment.

Borderless Capital partner Alvar Gracia described the DePIN category as unique and mature, with strong fundamentals and applications across various industries. The sector is “resistant to bear markets,” he added.

Gracia cited Helium, whose revenues “are almost uncorrelated with cryptocurrency markets” as subscribers pay for a mobile plan, and GEODNET—a decentralized real-time kinematic network for satellite navigation.

Gracia noted the uniqueness of DePIN projects’ tokenomics, which facilitates the conversion of revenue into coin value. In some cases, this mechanism includes buyback and burn strategies.

Overall, DePIN has the potential to create infrastructure, solve real-world problems, and could fundamentally transform existing Web2 industries, the specialist concluded.

In July, developers of the AI platform SingularityNET and the data storage network Filecoin announced a partnership to integrate artificial intelligence and DePIN while maintaining decentralization, neural network ethics, and information reliability.

For more on how DePIN works and why it has attracted significant investor attention, read the ForkLog article: