Ego Dying Capital has closed its second fund, totaling $100 million, to speculate solely in software program corporations constructing companies on the Bitcoin protocol. The agency is positioning itself as a lead Collection A investor in an ecosystem the place scalable, Bitcoin-native companies are starting to realize optimistic money movement.
“We’re in Bitcoin, investing in true corporations … which can be fixing actual world issues,” mentioned Nico Lechuga, one among Ego Dying’s founding companions, in an announcement to Axios.
Not like many enterprise companies unfold throughout the broader digital asset panorama, Ego Dying Capital maintains a strict concentrate on Bitcoin. The second fund will primarily again Collection A stage corporations with annual revenues between $1 million and $3 million which can be capital-constrained however exhibiting traction. A small portion of the fund shall be allotted to promising seed-stage ventures.
The fund’s buyers are principally Bitcoin-aligned household workplaces, reflecting a rising urge for food for publicity to companies constructing sustainable, revenue-generating Bitcoin targeted companies.
Lechuga famous that the business lacked a lead investor for Collection A rounds within the Bitcoin area, a niche Ego Dying is now aiming to fill. “We see Bitcoin as the one decentralized and safe base to have the ability to construct on,” Lechuga added.
The fund has already made just a few early bets, together with investments in:
- Roxom, a Bitcoin-based change
- Relai, a Bitcoin financial savings device
- Breez, a funds infrastructure firm constructed on the Lightning Community
The fund’s $100 million elevate follows a robust first shut of $43.35 million introduced final yr, which noticed outstanding Bitcoin voices like Preston Pysh and Lyn Alden be a part of Ego Dying Capital as basic companions. The early commitments signaled strong investor confidence within the agency’s imaginative and prescient, which has already led to backing notable startups like Fedi, LN Markets, and extra.
Ego Dying Capital is intentionally steering away from speculative crypto tasks, selecting as an alternative to assist corporations that derive their enterprise fashions straight from the Bitcoin protocol. Lechuga believes Bitcoin-based companies provide a greater path ahead, some at the moment are producing money movement in BTC, creating alternatives to outperform the underlying asset.