Venture Capital Firm Starts New Half-Billion Fund Focused On Algorand

Last updated: Mar 30, 2023
3 Min Read
AI Generated Summary

Borderless Capital, a venture capital firm based out of Miami, has launched a new $500 million fund focused on Algorand (ALGO).

The firm announced that its new fund will aim to invest in projects built within the Algorand ecosystem, and is set up to tackle the creators economy with non-fungible tokens (NFTs), as well as “accelerating the growth of the capital that participates in the ALGO DeFi ecosystem through liquidity mining, lending, borrowing and yield farming.”

Algorand is a blockchain-based crypto that utilizes “pure proof of stake (POS)” to power its smart contract architecture. It enables users to create smart contracts or tokens that represent new or existing assets.

The project aims to be one of the greenest of all cryptocurrencies. As it says on its site:

“Because its consensus is not based on energy-intensive proof-of-work and requires minimal computational power or electricity, Algorand has been a leader in minimizing the environmental impact of blockchain technology. The energy required to run a node in the network is negligible, and can be done on a device as simple as a Raspberry Pi. Compared to other blockchains, digital asset creation and transactions on Algorand result in magnitudes less CO2 emissions, with initial analysis demonstrating around 2 million times less.”

Image via Shutterstock

Arul Murugan, founding managing partner at Borderless Capital, also cited Algorand’s eco-friendly mechanisms as something that stands out to the firm.

“Algorand is the most efficient next generation blockchain software in the market right now, and it is the next frontier for investment opportunities and disruption. Our Borderless ALGO Fund II will continue to be at the forefront of the ecosystem and further ignite the growth by enabling the new innovation that is coming to blockchain.”

The venture capital firm’s leap into the ALGO ecosystem comes shortly after former Citigroup executive Matt Zhang started a $1.5 billion fund in partnership with Algorand. According to the announcement, Algorand would be acting as “a strategic partner to provide technology capability and network ecosystem infrastructure..”

“We believe that Algorand is the preeminent blockchain protocol that allows institutional and corporate users to connect with the decentralized economy. With the explosive growth of the digital asset space, people tend to forget how early the crypto economy still is. We want to team up with partners who have the patience to build an enduring business.”

Algorand also has a public endorsement from SkyBridge Capital CEO Anthony Scaramucci. The hedge fund billionaire revealed in September that his firm would be allocating $100 million to an Algorand-focused fund.

Coin bureau logo circle.jpg

The Coin Bureau news team comprises a group of talented writers and analysts committed to delivering timely and accurate information about the world of cryptocurrency. Led by a seasoned editor-in-chief with extensive experience in financial journalism, the team boasts diverse backgrounds and skills, from technical analysis to industry insights.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Previous article
SEC Chair Gary Gensler Says Bitcoin in Competition with US Banking System
next article
Federal Reserve Could Kill Crypto Rallies In 2022