Electric Capital raises $1 billion for two new crypto funds

Between the lines: Electric's pair of funds reflects a growing reality in crypto investing: many companies and projects may never raise traditional venture capital beyond the early-stage once their token networks get deployed.

• At that point, purchase tokens may be the only way for an early investor to keep investing—and to keep purchasing what's valuable about the company.
• "There are seed or Series A companies that haven't gone up the S-curve," says Electric Capital managing partner Avichal Garg in reference to the idea that startups can hit an inflection points that trigger high growth before hitting maturity.
• "So if you can find high quality investments, you want to hold them because they haven't gone up the S-curve."
• Sequoia Capital also recently announced a token-focused fund.

Go deeper: Meet the modern crypto VC