Arrington XRP Backs Fund's $200 Million Raise for Algorand Blockchain

Algo Capital, an investment firm exclusively focusing on the Algorand blockchain ecosystem founded by the MIT professor Silvio Micali, has raised $200 million for a new fund dubbed Algo VC Fund.

The company said in an announcement on Tuesday that those who committed include investors like NEO blockchain's NGC Ventures, TechCrunch founder's Arrington XRP Capital, Bakkt and tzero investor 11-11 Ventures, among others.

Though set up as an independent entity separate from the Algorand Foundation and Algorand LLC, which oversee the development of the Algorand blockchain, Algo Capital invests exclusively on projects within the Algorand economy.

The firm said the fund will focus on projects that are building applications and infrastructure on Algorand to accelerate the adoption of the blockchain's native cryptocurrency Algo as a means of payment.

"Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions, and as a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network," Algo Capital's founder and managing partner Arul Murugan said in the statement.

The firm added it received all commitments to the fund in the Algo crypto, which will be the primary method for all capital calls.

An undisclosed portion of its capital investments are also comprised of Algo to let portfolio companies use the cryptocurrency as a means of payment.

The fund's launch comes months after the Algorand Foundation raised around $60 million via an auction.

In October last year, the project raised $62 million in a private sale.

Based on data from CoinMarketCap, the Algo crypto is traded at about $0.5 as of press time, down 80 percent since June, when it was first launched for trading.