Crypto Asset Manager Arca Launches First Fund for Startup Investments

The firm’s first VC fund was oversubscribed above its $30 million cap, said Arca’s David Nage.

Oct 5, 2021 at 2:26 p.m. UTC
Updated Oct 5, 2021 at 9:43 p.m. UTC

Asset management firm Arca has launched a new fund to invest in crypto startups.

“Right now, the fund is really focused on seed and SAFT investments, so early-stage valuations that are sub–$40 million in terms of pre-money valuation,” Arca portfolio manager David Nage told CoinDesk in a phone call.

The “Arca Endeavor Fund” represents the latest rush by VC firms large and small into the world of digital assets. In a research note published Monday, Bank of America noted that venture capital investment in the sector surpassed $17 billion in the first half of 2021, “dwarfing” the $5.5 billion from the same period last year.

Endeavor is Arca’s first foray into startup investments. The fund has already made four initial bets – Bitwave, Lattice, BlockchainSpace and an undisclosed fourth – and is targeting 10 additional investments by the end of 2021, Nage said.

Arca has seen tremendous growth this year. The asset manager has passed $500 million in assets under management in Q3 and has grown its team to 35 people.

Besides the NFT and gaming space, Nage emphasized his strong belief in multi-chain solutions.

“We are very cognizant that we are moving into a multi-chain world,” Nage told CoinDesk. “So interoperability as a narrative and as a theme is definitely a part of what we’re going to be looking at in terms of Web 3.0 adoption.”

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