As cryptocurrency markets stall in early 2026, one private equity fund is quietly expanding its war chest to support real-world infrastructure in the sector.
Escape Velocity raises $61.74 million for its second cryptocurrency infrastructure fund
while Bitcoin Treat the water to start 2026feelings towards Decentralized physical infrastructureor DePIN, has deteriorated further. Symbols associated with physical networks, e.g Helium and Cell foldersWe are commerce Near all-time lows. However, emerging manager Escape speed It is doubled, having stirred $61.74 million For a second fund focusing on DePIN and more broadly encryption.
The new car is closed Decemberattracting a list of prominent backers. It is worth noting, Marc Andreessen It joined the round, along with fintech heavyweights Mickey Malka to Ribbit Capital. Moreover, the player fund money sandalwood committed 15 million dollarswhich is the largest check in the fund, according to the co-founder Mahesh Ramakrishnan.
“I think the nature of cryptocurrencies and doing very external investing is that there will be cycles of very bearish sentiment and cycles of very bullish sentiment,” Ramakrishnan said, reaffirming his conviction in the importance of investing in cryptocurrencies. Decentralized physical infrastructure networks. However, he acknowledged that the current market phase is testing investors’ patience.
DePIN thesis: Real-world networks and native cryptographic incentives
It has been the core proposition of cryptocurrencies for a long time Decentralization. The builders created financial tracks, currencies and assets beyond the control of any single party. However, DePIN’s founders are expanding this idea from the digital realm to physical networks, designing peer-to-peer services for Wi adFi, mobile phone plans, mapping, and even drones.
To smooth this Encryption of decentralized physical infrastructure networks Projects, startups usually reward participants with tokens. these DePIN Token Incentives It aims to get people to provide bandwidth, devices, or data for the network. However, despite the interest, DePIN has yet to achieve as much success and nominal prices as Lowest levels of helium symbol and Lowest levels of Hivemapper code Reflect that gap.
Ramakrishnan, sometimes described as a “DePIN cheerleader,” sees this model as still early. In his view, many first-generation initiatives launched their tokens too early. “A lot of what I’ve seen in the last three years is DePIN projects launching tokens before they have anything, they’re launching tokens based on hype and based on the idea,” he said.
Support builders outside the hype cycle
Instead of hype-driven launches, Ramakrishnan and co-founder Salvador Gala You want financing? – Strengthening the decentralized physical infrastructure Startups that can demonstrate real use. Furthermore, they are looking for founders who can design token systems that support sustainable businesses, not just short-term bouts of speculation.
The pair first met as interns at Goldman Sachsa traditional finance giant. Gala later became an investor in Ribbit Capitalwhich has supported fintech names such as Robinhood, revolutionand Coinbase. Meanwhile, Ramakrishnan has joined a powerful private equity firm Apollo Global Managementand deepen its exposure to institutional capital markets.
by 2022They both became committed cryptocurrency enthusiasts and decided to start their own fund. “The idea that you can use these crypto-incentives, and almost connect people to these economic communities, seems like something very new, where you can build businesses around communities,” Ramakrishnan said. However, they have chosen to pursue this vision just as is the case on a larger scale Crypto market He was falling apart.
From the first fund to the expanded DePIN wallet
Despite the recession in 2022Ensure escape speed 20 million dollars From top-tier cryptocurrency investors, including institutional investors Andreessen Horowitz, Multiple currenciesand Framework projects. This seed capital allowed the team to begin assembling a focused set of infrastructure operations. Furthermore, their strategy resonated with founders working at the intersection of hardware, energy, and industries Block chains.
Among their early bets are solar startups focused on DePIN daylight and Yeshuawhich aims to use token incentives to expand distributed energy networks. While the company has not yet returned significant capital to its limited partners, investors in the fund are locked in for 10 years, giving the portfolio companies time to mature.
This long-term structure gave Ramakrishnan and Jala the space to support pilot projects that would otherwise take years to generate cash returns. However, their attraction to founders and their ability to raise a second, larger group suggests that LPs are accepting the premise that the DePIN venture capital fund model can eventually lead to outsized results.
Investor conviction and long-term outlook
For specialists such as sandalwoodThe appeal of Escape Velocity’s view lies on the frontier of cryptocurrency infrastructure. “We felt they had a real prime location to see some of the best founders and projects being built in the industry,” he said. Graham PingreePartner in Fund Manager. This support is confirmed on a broader scale Cendana Fund Investment Topic in emerging managers.
Latest Escape speed fundraising This suggests that even in the face of weak token prices and skeptical public sentiment, a subset of institutional and high-net-worth investors remain confident in cryptocurrency networks in the physical world. Moreover, supporters like Marc Andreessen Highlighting that blue-chip venture capital still sees DePIN as a frontier worth funding.
Looking to the future, Ramakrishnan and Gala plan to continue targeting projects that can align cryptocurrency incentives with tangible infrastructure services. While many of DePIN’s early experiments faltered, they argue that the basic idea of Dibin Investment Fund Supporting real-world networks remains compelling for patient capital.
In summary, Escape Velocity’s expanding capital base, marquee investor lineup, and growing DePIN wallet demonstrate that despite a challenging market and tokenization, compelling capital is still flowing into decentralized physical infrastructure plays.
