On September 18, Borderless Capital announced the launch of its third fund focused on Decentralized Physical Infrastructure Networks (DePIN), with an impressive commitment of $100 million. This initiative aims to foster the development of DePINs, which are rapidly emerging as a leading sector within the crypto landscape.
Borderless Capital, a prominent Web3 investment manager, emphasizes that this new fund will target investments at the protocol level, reflecting their confidence in the future of DePIN technology. The firm’s strategy includes prioritizing Web2.5 DePINs, impact-focused projects, and commodity-based DePINs.
DePINs harness blockchain technology to maintain physical infrastructure, offering a decentralized alternative that reduces costs compared to traditional Web 2.0 models. This innovative approach enables the creation of applications, GPU clusters, and connectivity networks in a more cost-effective manner.
Alvaro Gracia, a Partner at Borderless Capital, expressed his enthusiasm for DePINs, stating, “We’re betting on them because we believe in innovation, especially in Web3.” He envisions DePINs becoming a global standard for physical infrastructure development, allowing investors to generate passive income while enhancing accessibility for users.
Gracia highlighted the potential of Physical resources within DePINs, noting, “Network effects provide unbreakable moats,” and emphasized areas such as smartphone-based DePINs, mobility solutions, mapping, wireless networks, and digital resources as key opportunities for growth.
The DePIN Fund III is backed by notable investors, including the Solana Foundation, Jump Crypto, IoTeX, Peak, GSR, Sonic Boom Ventures, and Movement Labs. Sean Carey, former head of U.S. investments at Telefonica, remarked that DePINs could be a transformative force, addressing real-world needs and potentially onboarding the next billion users into the Web3 ecosystem.
The Borderless Capital team referenced the remarkable success of the Helium Network, which deployed over one million antennas in just 18 months, as an illustration of DePIN’s rapid growth potential.
This latest fund follows the launches of DePIN Fund I and II in 2021, which were backed by Telefonica, OKX, and Jump. The initial funds collectively focused on more than 35 projects, including innovative initiatives like DIMO, Silencio, Wingbits, XNet, and Natix.
As the DePIN sector continues to gain momentum, Borderless Capital’s latest fund underscores a strong commitment to fostering the next wave of innovation in decentralized physical infrastructure, setting the stage for a more interconnected and efficient future.
September 2024, Cryptoniteuae