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The EGO Death Capital risk company provided $ 100 million for its second fund, focused on scaling software startups building on a bitcoin protocol.
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The Fund is designed to fill the gap in series and funding for companies focused on real applications of bitcoins, founding partner Nico Lechuga said Axios.
“We are in bitcoins and invest in real companies that solve problems in the real world,” Lechuga said.
Unlike wider crypt funds that chase speculation with tokens, Ego Death supports startups generating revenue and cash flow, often in the BTC itself.
The Fund focuses on companies that earn between $ 1 million and $ 3 million, while growing more capital than market demand.
While the fund primarily focuses on the series A series, a small part is reserved for investment in the initial level that shows strong potential.
Fund supporters are mainly family offices that have already been invested in bitcoins and want to support the development of the surrounding ecosystem.
Lechuga said that this industry has long been lacking the main investor for the series A series, the role of ego Death now filling them.
The recent investment of eGo Death is Roxom, Bitcoin’s Bitcoin; Relai, Savings application; and Breez, a platform for Lightning -based payments.
The company avoids hardware startups, mining companies or bitcoin infrastructure, and instead decides to strictly focus on scalable software companies.
Unlike many cryptomatically oriented companies, ego deliberately avoids exposure to the tokens.
Lechuga believes that building sustainable bitcoin natives can overcome the possession of the assets themselves, especially when startups generate revenue directly in BTC.
“We see bitcoins as the only decentralized and secure base on which it is able to build,” he said.
With the new fund, Ego Death bet on an advanced, bitcoin -based Bitcoin economy that is powered by real business foundations, not speculative hype.
Skepticism around the sustainability of the trend of bitcoin cash registers is growing.
Last week, the main analyst Glassnode James raised concerns of longevity From the corporate bitcoin cash register strategy, to argue that easy profits can be gone for the new participants as the market ripens.
Warning reflects recent comments by Matthew Sigel, the head of the research of digital assets at Vaneck, which has expressed concern about bitcoin strategies received by some publicly traded companies.
Sigel has selected the use of programs of publishing on the market (AT-the-the-the-the-path (ATM) and claims that they can dilute if the company’s company’s price is close to Bitcoin’s net assets (NAV).
Meanwhile, New York Pomerantz LLP filed a lawsuit against a pile Compared to Michael Saylor’s strategy, he accuses a company focused on Bitcoins from misleading investors about the profitability and risks of his crypto investment strategy.
Contribution EGO Death Capital gets $ 100 million to support startups focused on bitcoins He appeared for the first time Cryptonews.