MIT professor, Silvio Mical, founded the Algorand blockchain ecosystem. An investment company, called Algo Capital, decided to focus solely on this technology and create a new fund called Algo VC Fund, for which it has raised $200 million. The $200 million raise from Arrington XRP Backs Fund for Algorand Blockchain.
In an announcement on Tuesday, the firm said that, among others, those who made a commitment included investors such as:
- NEO blockchain’s NGC Ventures
- Arrington XRP Capital’s TechCrunch founder
- 11-11 Ventures
Algo Capital is established as an independent entity distinct from the Algorand Foundation and Algorand LLC. It oversees Algorand blockchain’s development. Also, invests exclusively in Algorand economy projects.
Algo Capital’s founder and managing partner Arul Murugan said in the statement:
“Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions. As a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network.”
The company said the fund will concentrate on projects that build Algorand apps and infrastructure. This is to accelerate the implementation of the indigenous cryptocurrency Algo of the blockchain as a means of payment.
The company added that in the Algo crypto, which will be the main technique for all capital calls, it obtained all obligations to the fund.
Algo also includes an undisclosed part of its capital investments to allow portfolio companies to use the cryptocurrency as a payment method.
The launch of the fund comes months after a $60 million auction was raised by the Algorand Foundation. The project raised $62 million in private sales in October last year.
The Algo crypto is traded at approximately $0.5 as of the press moment, down 80% as of June when it was first introduced for trading.