Asset management firms Alpha Innovations and Arcanum Capital have announced the launch of a $10 million capital fund. This was revealed on Monday, February 15, 2021, and will focus on seeding and incubating blockchain and DeFi startups.
$10 Million Startup Fund
According to a company statement on Monday, the startup fund named Arcanum Emerging Technologies Fund is the first of a series with an initial close date in February. The fund will be used to provide seed and series A financing for blockchain startups in emerging economies.
The company further stated that the fund would be geared towards finding and supporting blockchain firms focused on decentralized finance and Web 3.0. It will also set aside some funds to tackle social issues that will inevitably exist in the emerging markets.
India to Initially Benefit From Startup Fund
The startup fund will initially focus on blockchain projects in India, one of the world’s growing blockchain markets. It was further revealed that India’s choice was logical because Arcanum founding partner Rahul Andra was based in Bangalore, India, where he works with the blockchain community to explore new projects.
James McDowall, founding partner of Arcanum added that India was a market where DeFi startups spring up. “DeFi is hot right now. But there is a lot of financial inclusion to take place in India and other emerging markets, and that’s something we’re passionate about”.
COO of Alpha Innovations Nicole Biernat revealed that Acaranum’s global reach attracted her firm towards a partnership with Arcanum. She also believes that there is a lot of potentials globally that can improve the blockchain industry. “What’s so powerful about that is that each of them has these very deep networks and connections in their respective areas. So there’s a lot of different places to draw talent from,” she added.
India a growing hub for crypto investments
Despite the lack of regulatory clarity of cryptocurrencies and recent controversial crypto law. The Indian blockchain space continues to attract significant capital investment from venture organizations.
The Asian nation is home to one of the largest pools of developers globally and offers a huge market for blockchain products. The country has drawn investments from blockchain platforms like Cardano and Zilliqa in the past.