TechFlow news, on September 23, according to PitchBook data, as of August 2024, crypto venture capital firms have raised over $2.2 billion in new funding through closed-end funds. In just the past few weeks, at least six VCs have collectively secured more than $500 million, including ParaFi Capital's $120 million fund, Borderless Capital's $100 million fund, Hack VC's $77 million fund, and Robot Ventures' $75 million fund. Additionally, Dragonfly Capital is seeking to raise $500 million and has reportedly already achieved half of its target.
Alvaro Gracia, partner at Borderless Capital, said this is its third fund focused specifically on decentralized physical infrastructure networks (DePIN). DePIN leverages blockchain technology and token incentives to enable individuals to create connected networks such as GPU clusters. Gracia noted that the DePIN sector is experiencing significant growth, not only in the number of projects but also in the scale of funding and project ambition.
Gracia emphasized that DePIN may be the only category in Web3 whose value originates outside the crypto industry, making it highly resilient during bear markets. He cited Helium and GEODNET as examples, pointing out that these projects generate revenue with little to no correlation to the crypto market. For instance, GEODNET has already achieved over $1.5 million in annual recurring revenue (ARR), earnings that are unaffected by fluctuations in the crypto market.
