Michael Arrington’s crypto venture-capital firm, Arrington Capital Management, is launching a $100 million venture fund for bets on projects building on the Algorand.
Called the Arrington Algo Growth Fund (AAGF), the new fund will invest in tokens and equity, Arrington told CoinDesk in a telephone interview. It is Arringtonl’s second crypto-focused fund after the flagship Arrington XRP Capital Fund, which in March reported $236.7 million in assets for last fiscal year.
Arrington Capital now has over $1 billion in assets under management, according to a press release.
AAGF adds to a growing list of crypto funds now pumping over $500 million into cryptographer Slivio Micali’s proof-of-stake blockchain. Ranging from bets on non-fungible tokens to municipal buildouts with crypto-friendly Miami, the funds are all aiming to accelerate the development of Algorand’s ecosystem.
“Our LPs (limited partners) include several parties who align with the Algorand vision and want to support the expanding ecosystem with new offerings,” Arrington said. “We may also bring on additional investors. Additionally, I am personally investing in the fund.”
Algorand, like other protocols, is eager to gain an edge in the lucrative decentralized finance (DeFi) arms race. Its 11 million addresses pale in comparison to sector leader Ethereum’s 157 million, but the blockchain is far more nimble, both in terms of transaction processing power and speed. Even so, Algorand lacks an established DeFi ecosystem that other chains enjoy.
However, that may start to change. Yieldly – a “no-loss lottery” (akin to PoolTogether) and Algorand’s first native DeFi application – has amassed over $11 million in total value locked (TVL) following its June 5 debut. Keli Callaghan, Algorand’s head of marketing, said the app, which launched with backing from the Algorand community fund, is already becoming a hit.