Escape Velocity Raises $62M for DePIN Fund as Crypto VC Slows

Escape Velocity, a cryptocurrency-focused venture capital firm, has raised nearly $62 million for a second fund dedicated to Decentralized Physical Infrastructure Network (DePIN) and other crypto-native projects. The vehicle closed in December and counts high-profile backers among its roster, including Andreessen Horowitz’s Marc Andreessen and Ribbit Capital’s Miki Malka, according to a Fortune exclusive. One of the companies participating in the fund of funds, Cendana Capital, contributed approximately $15 million to the vehicle, underscoring cross-sector support for infrastructure-backed crypto networks. The fundraising underscores the continued appetite for DePIN, even as broader cryptocurrency and technology funding slows, with Escape Velocity signaling a long-term strategy focused on tangible asset networks rather than purely speculative tokens.

Key takeaways

• The fund represents Escape Velocity’s second DePIN-focused vehicle and closed in December, with notable investors including Marc Andreessen and Micky Malka; Cendana Capital contributed $15 million.
• The latest data-backed push from Escape Velocity aligns with research showing DePIN has a combined market cap of about $10 billion and on-chain revenue of about $72 million in 2025, according to a joint State of DePIN report from Escape Velocity and Messari.
• Despite significant declines in token prices across the sector, income-generating DePIN networks have proven to be more sustainable, suggesting that real-world utility can continue even as markets reprice risky assets.
• Analysts point to centers of regulatory clarity and demand for deployment – ​​particularly in the UAE and Singapore – as accelerators of DePIN adoption outside traditional startup ecosystems.
• The fundraising demonstrates a divided market: capital for assets and infrastructure tied to the physical world, rather than speculative token launches alone.

Feelings: neutral

Market context: The news reflects selective investment activity in native cryptocurrency sectors where tangible benefit meets regulatory clarity. While broad cryptocurrency funding remains restricted, DePIN-focused capital is showing a willingness to support long-term infrastructure projects that integrate physical assets with blockchain protocols.

Why does it matter?

For DePIN network builders and operators, the new Escape Velocity Fund signals continued belief in the viability of infrastructure-backed crypto ecosystems. DePIN projects seek to monetize real-world assets — from sensor networks to edge computing and broader IoT deployments — by aligning them with decentralized incentives and governance. Having a notable fund backing such projects provides a path to more sustainable early-stage capital, allowing teams to de-risk proof-of-concept deployments and large-scale use cases that require tangible physical deployments rather than purely online traction.

From an investor’s perspective, this move defines a clear difference within the cryptocurrency markets. While speculative tokens have faced sharp declines from their peak in late 2024, networks linked to real-world infrastructure continue to generate on-chain activity and revenue that can outlast sentiment-driven cycles. Industry observers note that DePIN’s maturity depends on regulatory clarity and deployment cadence; Jurisdictions such as the UAE and Singapore are highlighted as enabling environments for pilots and partnerships with utilities, telecoms and asset owners. The evolving regulatory backdrop could determine whether DePIN will move from a novel model to one that is replicable and scalable across diverse asset classes.

The broader industry context is important because it determines how a VC evaluates an opportunity. DePIN’s thesis is based on the idea that token incentives can align different stakeholders – owners of physical assets, network operators, and end users – around the creation of shared value. However, the literature also emphasizes the need for real-world utility rather than hype, a sentiment echoed by practitioners who caution against token launches built on optimism rather than achievements. In this environment, Escape Velocity’s commitment to supporting founders with concrete deployment plans — rather than purely code-focused projects — represents a cautious, infrastructure-first approach that could shape future venture activity in this space.

The market capitalization of DePIN projects has fallen to less than $9 billion, compared to a peak of more than $43 billion in late 2024. Source: DePINscan

Beyond capital, DePIN’s discourse is increasingly about where networks can operate and be monetized. The joint State of DePIN report, released by Escape Velocity and Messari, confirms that despite the decline in token prices across the sector, revenue-generating networks have continued to operate. Total cross-chain sector revenue in 2025 is estimated in the tens of millions, a modest number in the context of broader cryptocurrency markets, but a sign of continued activity at the intersection of physical infrastructure and digital incentives. The report also highlights a focus on getting back to basics among builders: creating a real-world utility, demonstrating scalable deployment, and then seeking institutional alignment around governance and monetization. These dynamics help explain why the funding cycle rebounded in late 2020 around DePIN despite the broader overall decline in risk assets.

Analysts also point out that a fair share of DePIN tokens remain deeply discounted against all-time highs, a fact that reflects the dislocation between real-world speculation and adoption cycles. However, the robustness of some DePIN networks—particularly those tied to core services or infrastructure—suggests a potential turnaround if the speed of deployment accelerates and regulatory clarity continues to improve. In practical terms, this could translate into more pilot projects in regulated markets and increased collaboration with public or quasi-public bodies seeking flexible, asset-backed technology layers for critical functions.

In short, the addition of the Escape Velocity Fund reinforces a bifurcated market dynamic: capital continues to flow into infrastructure-focused cryptocurrency projects where there is measurable asset-backed value, while token-only narratives face increasing scrutiny. The UAE and Singapore are emerging as prominent catalysts in this shift, offering clearer rules and faster implementation paths for projects seeking to combine physical networks with blockchain-enabled incentives. As DePIN evolves from concept to implementation, observers will watch for tangible deployments, partnerships and regulatory signals that validate the model beyond market tokenism.

What are you watching next?

• Announcements of DePIN network deployments and funded demonstration projects of the new Escape Velocity vehicle in 2026.
• New partnerships or co-investments with UAE or Singapore based organizations aim to scale DePIN deployments.
• Updated data from DePIN Status and DePINscan reflect deployment activity and on-chain economics.
• Regulatory developments in key markets clarifying how tokenized infrastructure projects and associated financing structures will be handled.
• Follow-on rounds or exits from Escape Velocity-backed DePIN projects to measure real-world traction beyond fundraising narratives.

Sources and verification

• Fortune exclusively reports on the $62 million Escape Velocity fund and its December closing, with investor names including Marc Andreessen and Miki Malka.
• Escape Velocity and Messari, State of DePIN report detailing the sector’s market cap of US$10 billion and approximately US$72 million in on-chain revenue in 2025.
• DePINscan data shows a market capitalization below US$9 billion and a historical peak above US$43 billion in late 2024.
• The regulatory context in the UAE and Singapore has been described as suitable for DePIN deployment.
• Cointelegraph coverage was referenced in the source material discussing HashKey Capital’s bullish stance on DePIN.

This article was originally published as Escape Velocity Raises $62M for DePIN Fund as Crypto VC Slows on Crypto Breaking News – Your Trusted Source for Cryptocurrency News, Bitcoin News, and Blockchain Updates.