Algo VC Fund Receives $200 Million For Algorand Blockchain
An investment firm, Algo Capital, which exclusively focuses on the Algorand blockchain ecosystem has received an amount of $200 million for the new Algo VC Fund. The company was founded by Silvio Micali, a professor from MIT.
In an announcement made on Tuesday, the company said that investors such as TechCrunch founders Arrington XRP Capital, NEO blockchain’s NGC Ventures and tZero investor 11-11 Ventures had committed to the initiative.
Even though it was set up as an independent entity, separately from the Algorand LLC and Algorand Foundation, which develop the Algorand blockchain, Algo Capital invests particularly on projects having to do with Algorand economy.
The company said that these funds received will work on projects which are developing applications and infrastructure on Algorand in order to boost the adoption of Algo, blockchain’s native digital currency, for a transaction platform.
“Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions, and as a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network,” Arul Murugan, Algo Capital’s founder and managing partner said in the statement.
Additionally, the firm claims to have received all the commitments to the firm in Algo crypto, which will be the main method for all capital transactions. An undisclosed amount of its investments also consisted of Algo to enable portfolio companies to use cryptocurrencies for their payments.
The fund’s release was announced months after the Algorand Foundation raised almost $60 million through an auction. In October 2018, the company received $62 million as funding in a private sale.
As per the data suggested from CoinMarketCap, the Algo crypto is traded at $0.5 currently, which is a drop of 80% since June last year, when it was launched initially for trading.