Bakkt investor 11-11 Ventures has backed a $200 million venture capital (VC) fund focused on the Algorand blockchain platform.
The fund, called Algo VC Fund, will invest in startups building on the Algorand blockchain and those who would help accelerate the use of its native token Algo, according to an announcement Tuesday.
“All commitments to the Algo VC Fund were accepted in Algos rather than U.S. dollars and the Algo is the primary currency for all capital calls,” said Algo Capital. Algo token was the worst-performing token on Binance exchange last month, with a monthly return of -62%.
The fund initially targeted to raise $100 million but ended up raising double the amount, per the announcement. Arrington XRP Capital, NEO blockchain’s NGC Ventures and Brainchild also invested in the fund, among others.
Algo VC Fund’s current portfolio companies include - security token issuance platform Securitize, decentralized crypto exchange Idex and institutional crypto exchange and cross-custodian settlement platform OTCXN, among others.
“Each of the portfolio companies is working closely with Algorand to leverage its platform for speed, security and feature development,” said Algo Capital.
Algorand concluded its first public token sale in June, raising $60 million. The project is founded by MIT professor and Turing Award winner Silvio Micali and is backed by well-known venture capital firms including Union Square Ventures.