Home News Arca raises $30M for digital assets venture fund

Arca raises $30M for digital assets venture fund

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Digital asset investment management company Arca has launched its first venture fund for the digital asset ecosystem, the volume for which exceeded $30 million.

Thus, according to the press release, Arca Endeavour Fund aims at investing in projects at an early stage. Priority areas include, among others, DeFi, gaming, Web 3.0, NFT infrastructure, financial services and insurance. In addition, the Fund has already made several initial investments. Bitwave, Lattice, BlockchainSpace, and an unnamed fourth company are among them. Endeavor intends to make ten additional investments before the end of the year.

Moreover, the functions of the portfolio manager were taken over by Arca financial services veteran David Nage. He was joined by the firm’s Chief Operating Officer, Michael Dershewitz. Jeff Dorman, the company’s Chief Information Officer, headed the fund’s investment committee. The anchor investor of Endeavour was Mike Novogratz‘s venture division of Galaxy Digital crypto trading bank.

Digital assets as a capital formation mechanism

Previously in January 2021, Arca raised $10 million in a Series A funding round. The CEO and co-founder of the company Rayne Steinberg said at the time that “the introduction of digital assets as a capital formation mechanism is the greatest innovation in the financial services sector.”

He noted that the assets of the company’s flagship hedge fund doubled every quarter of 2020.

“Digital assets have fundamentally changed the dynamics of the relationship between founders and investors, and Arca Endeavour Fund is closing the gap between them,” said David Nage.

The volume of venture transactions

According to Crunchbase News, only in the first half of 2021, the volume of venture financing in the blockchain industry reached $8.8 billion. The industry accounted for just over 3% of the total volume of transactions, which amounted to $288 billion.

The first half of 2021 was a record in the volume of venture transactions: the indicator increased by 61% compared to the previous peak of $179 billion recorded in the last two quarters of 2020.

In six months, participants in the digital asset industry have attracted more funding than in the previous two years.

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