Arca closes $30 million venture fund as it crosses $500 million in AuM

Arca, the cryptocurrency investment firm, announced Tuesday the close of a new venture fund, making it the latest entrant to an ever-growing corner of the market.

Dubbed Endeavor, the fund will back companies in the non-fungible token market as well as companies operating in blockchain-based gaming and Web 3.0. According to Arca’s David Nage, the firm was able to raise capital for the fund in a matter of weeks and it is oversubscribed above its cap of $30 million. Nage, who is a member of Arca’s founding team, will serve as the portfolio manager for the new fund. 

Galaxy Digital’s Vision Hill unit is backing the fund as an anchor investor. The new fund joins Arca’s flagship hedge fund, Digital Assets Fund and Digital Yield Fund. The firm manages more than $500 million. 

A number of new funds targeting early-stage crypto companies have come online in recent months. As The Block previously reported, former ConsenSys executive Kativa Gupta launched a fund aimed at the NFT market and decentralized finance. 

In total, venture capital firms have poured around $17 billion into crypto firms from the beginning of the year through the end of Q3, as tracked by The Block Research. As The Block Research’s John Dantoni has noted, the crypto funding market’s hot streak continued into the summer, a typically quieter period for dealmaking.

The blockchain sector received nearly $2.1 billion in private investments during August.