1. New DePIN Fund by Borderless Capital
2. Interest from Web3 Investors and Venture Capitalists
3. DePIN Growth Potential

On September 18, Web3 investment manager Borderless Capital announced the launch of its third DePIN-focused fund. The $100 million fund aims to accelerate the development of Decentralized Physical Infrastructure Networks (DePIN).

New DePIN Fund by Borderless Capital

Today, Borderless Capital introduced its third DePIN-focused fund. According to the firm, the new fund will focus on protocol-level investments. The company also noted that this investment reflects their optimism about the future of DePIN in the Web 3 space. Investment firm Borderless Capital launched its third fund focused on Decentralized Physical Infrastructure Networks (DePINs). According to the team, the fund will prioritize Web2.5 DePINs, Impact, and commodity DePINs.

Interest from Web3 Investors and Venture Capitalists

DePINs have reportedly emerged as the fastest-growing sector in crypto. They allow for the maintenance of physical infrastructure by leveraging blockchain. Additionally, their decentralized nature enables investors to build applications, GPU clusters, and connectivity networks at a lower cost compared to Web 2.0 models. Alvaro Gracia, Partner at Borderless Capital, expressed optimism about DePINs, noting that they are betting on innovation, especially in Web3. He also projected that DePINs will become a global standard in developing physical infrastructure, enabling investors to generate passive income and increasing user accessibility at a lower cost. quote: {"type": "CITE_NA", "content": "We’re especially excited about Physical resources, where network effects provide unbreakable moats, smartphone-based DePINs, mobility, mapping, wireless networks, and digital resources. DePIN offers a unique edge at this intersection."}

DePIN Growth Potential

Sean Carey, former head of U.S. investments at Telefonica, stated that DePINs would be a game changer as they would help address real-world needs. He added that DePIN could potentially onboard the next billion users into Web3. According to Borderless Capital, the DePIN Fund III is backed by prominent investors such as the Solana Foundation, Jump Crypto, IoTeX, Peak, GSR, Sonic Boom Ventures, and Movement Labs. The Borderless Capital team cited Helium Network’s success to illustrate DePIN’s rapid growth potential, noting that the network deployed one million antennas in just one and a half years. The new fund follows DePIN 1 and 2, launched in 2021 and backed by Telefonica, OKX, and Jump. The first two funds focused on over 35 projects, including DIMO, Silencio, Wingbits, XNet, and Natix. According to a report by crypto.com, the top ten DePINs amassed over $1 billion, indicating increased venture capital interest in the DePIN category. According to crypto.com research, the total market cap for DePIN tokens was over $25 billion as of February 2024.

The launch of Borderless Capital's third DePIN fund underscores the growing interest in Decentralized Physical Infrastructure Networks. These networks offer significant benefits such as cost reduction and increased accessibility, making them appealing to investors and Web3 users.