Ego Demise 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 Sequence A investor in an ecosystem the place scalable, Bitcoin-native corporations are starting to realize optimistic money movement.
“We’re in Bitcoin, investing in true corporations … which might be fixing actual world issues,” mentioned Nico Lechuga, considered one of Ego Demise’s founding companions, in an announcement to Axios.
Not like many enterprise corporations unfold throughout the broader digital asset panorama, Ego Demise Capital maintains a strict concentrate on Bitcoin. The second fund will primarily again Sequence A stage corporations with annual revenues between $1 million and $3 million which might be capital-constrained however exhibiting traction. A small portion of the fund shall be allotted to promising seed-stage ventures.
The fund’s traders are largely Bitcoin-aligned household workplaces, reflecting a rising urge for food for publicity to corporations constructing sustainable, revenue-generating Bitcoin targeted companies.
Lechuga famous that the trade lacked a lead investor for Sequence A rounds within the Bitcoin area, a niche Ego Demise 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 trade
- Relai, a Bitcoin financial savings software
- Breez, a funds infrastructure firm constructed on the Lightning Community
The fund’s $100 million elevate follows a powerful first shut of $43.35 million announced last year, which noticed outstanding Bitcoin voices like Preston Pysh and Lyn Alden be a part of Ego Demise 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 Demise Capital is intentionally steering away from speculative crypto initiatives, selecting as an alternative to help corporations that derive their enterprise fashions straight from the Bitcoin protocol. Lechuga believes Bitcoin-based firms offer a better path forward, some are actually producing money movement in BTC, creating alternatives to outperform the underlying asset.