US crypto investment company Arca announced on the 5th that it has launched its first venture-capital fund, raising an oversubscribed amount above its $30 million cap within a week.
The fund, called ‘Arca Endeavor Fund’, will invest in companies operating in DeFi, Gaming, Web 3.0, Sports, Music and Fan Engagement, and NFTs. It was reported that the fund was backed by Galaxy Digital’s Galaxy Vision Hill as the anchor investor.
Scott Army, Managing Director and CIO at Galaxy Vision Hill, said:
“As investors in the flagship Digital Assets Fund, Galaxy Vision Hill continues to be attracted to the vision, strategy and experience of the talented investment team at Arca.”
Arca provides cryptocurrency-related funds that institutional investors can invest in, and manages assets worth over $500 million.
In August, the company launched the industry’s first active income yield fund, the ‘Arca Digital Yield Fund’, along with operating its major hedge fund, the ‘Digital Assets Fund’.
According to the company’s press release, Arca’s core team member David Nage will serve as the portfolio manager of the ‘Endeavour’ fund in addition to Michael Dershewitz, Arca Funds COO and Principal. Nage said in a statement:
“The Endeavor Fund signifies the shift in new social and economic paradigms occuring, creating new ways to serve the unbanked, and alter the models of the past few decades of tech exuberance.”
There has been an increasing number of cases where venture capitalists are financing new cryptocurrencies and blockchain funds in the United States. News media The Block reported that Venture Capital firms have invested approximately $17 billion into crypto firms just in 2021.
For instance, Chicago-based Venture Capital firm Jump Capital raised over $350 million for its latest fund, and major asset management company Franklin Templeton has set a target of $20 million for its new blockchain venture fund, indicating a significant rise in crypto and blockchain-based investments.