Electric Capital
Electric Capital is a venture capital firm with a specific focus on early-stage technology companies specializing in areas such as cryptocurrencies, blockchain, fintech, and marketplaces. [24]
Overview
Electric Capital was founded in 2018 and is headquartered in Palo Alto, California. The firm's investment philosophy centers around identifying promising companies and protocols within the crypto space. They assess investment opportunities based on innovative technology, market adoption potential, and real-world use cases. Their investment strategy includes both liquid tokens and illiquid tokens, enabling them to support projects at different stages of development. [25]
In addition to its traditional investment activities, Electric Capital takes an active role in partnering with crypto founders, offering invaluable expertise in areas such as governance, liquidity, and tokenomics. This collaborative approach allows the firm to work closely with founders, shaping and developing their protocols to achieve optimal results. The firm also actively fosters a vibrant global community of crypto founders and industry experts. By connecting individuals and facilitating collaborations, Electric Capital creates an environment that promotes knowledge sharing, fuels innovation, and nurtures partnerships within the dynamic crypto space. [16]
Funding
Electric Capital's first funding round was held and closed around November 2019.[10]
$110 million Funding
On Monday, August 3, 2020, Electric Capital announced that it had closed its second crypto funding round. The round closed with a total of $110 million from various investors, primarily within institutions, who are interested in investing in future entrepreneurs within the cryptocurrency space. [11]
$1 Billion Funding
On March 1, 2022, Electric Capital announced that it had raised $1 billion to fund crypto networks, Web3 protocols, and blockchain-enabled businesses. The funds consist of a $400 million venture fund and a $600 million token fund. Electric Capital's focus will revolve around long-term investing and supporting public goods in the crypto space. Their investment priorities include decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), layer 1s, and blockchain infrastructure. [21]
Co-founders Curtis Spencer and Avichal Garg emphasized their interest in projects that prioritize community involvement and fair token allocation. They aim to maintain ownership of less than 10% of a project's token supply and typically own around 1% to 5% of the networks they invest in. Electric Capital views community-heavy ecosystems as superior investment opportunities in the crypto industry, recognizing their potential for long-term growth. [21][22]
“The fastest-growth ecosystems we see in the last 10-12 months, they’re community-heavy.” - Curtis Spencer
Venture Fund III
On September 12th, 2023, Electric Capital launched a new venture fund, aiming to raise $300 million, according to a filing with the Securities and Exchange Commission. Named the Electric Capital Venture Fund III, it planned to offer pooled investment fund interests as a type of security. The first sale for the fund had not yet occurred, and Electric did not intend for the offering to last more than a year. [26]
Investments
Below is a list of Electric Capitals' current and prior investments.
- 4K
- Anoma
- Atrium
- Aurora
- Aven
- Bitnomial
- Bitwise
- Celo
- Certora
- Coinflex
- Comm
- ConsenSys
- Cozy Finance
- DYDX
- Delegate Cash
- DerivaDEX
- Eigenlayer
- Ellipsis Labs
- Espresso
- Fordefi
- Frax Finance
- Gamma
- Genesis Digital Assets
- Gitcoin
- Hashflow
- HealthEx Labs
- Hourglass
- Immunefi
- Integral
- Iron Fish
- JPG
- Kraken
- Kresko
- LFG Labs
- Lasso Labs
- Layer3
- Llama
- Magic Eden
- Marlin
- Membrane
- Mina
- MobileCoin
- Mysten Labs
- NEAR
- Nervos
- Nestcoin
- Noox
- Nova HQ
- OAK Network
- Oasis Labs
- Octopus Network
- OpenBlock
- Osmosis
- Privy
- Puffer Finance
- Rabbithole
- Radicle
- Re
- Saddle Finance
- Silo Finance
- Slingshot
- Solscan
- Spacemesh
- SpruceID
- Sublime Finance
- Sweatcoin
- Swivel Finance
- Syndicate Protocol
- Taker Protocol
- Term Labs
- Tokemak
- Token Flow
- Tonic
- Trisolaris
- Verse
- Waterfall
- Yoz Labs
- Zeta Markets
Team
- Adam Wolff: Technical Fellow
- Elizabeth Laraki: Design Partner
- Emily Meyers: General Counsel
- Jamie Hofferber: Operations
- Jeremy Carr: Founder Platform
- Jim Bai: Investor
- Kleidi Mico: Controller
- Ky Phan: VP of Finance
- Martha Shear: Investor Strategy
- Mitchell Hammer: Analyst
- Sanjay Shah: Investor
- Sid Venkateswaran: Protocol Specialist
- Thuan Le: Head of Operations
Partners
- Avichal Garg
- Curtis Spencer
- Ken Deeter
- Maria Shen
Advisors
- Akash Garg
- Elad Gil
- Jay Clayton
- Kevin Warsh
- Pratiti Raychoudhury
- Rebecca Rettig
Engineers
- Emre Caliskan
- Enrique Herreros
- Gary Thung
- Mark Xia
- Ren
- Serena Yan
- Swati Mardia