Originally published on: September 18, 2024
Borderless Capital has just unveiled the exciting news of its third fund specifically catering to decentralized physical infrastructure networks, known as DePINs. This fund, totaling a significant $100 million, is set to support blockchain-based projects focused on the development and maintenance of physical infrastructure on a global scale.
Since 2021, Borderless Capital has been actively investing in this transformative sector, backing innovative projects like Helium, Render Network, and GEODNET. The driving forces behind this new fund are Álvaro Gracia, a former executive from Telefónica, and Helium co-founder Sean Carey, alongside key support from industry players including Peaq, the Solana Foundation, Jump Crypto, and IoTeX.
Gracia expressed his enthusiastic outlook on DePIN technology, referring to it as “one of the most revolutionary innovations in the Web3 space.” He emphasized the shift toward decentralized systems utilizing blockchain to construct and uphold various physical infrastructures like connectivity networks, computing power, and geolocation services.
DePIN projects empower individuals and smaller entities to contribute resources such as hardware, data, or services to the network and receive rewards in the form of tokens, eliminating the need for traditional centralized entities. Notable examples like Helium and Filecoin demonstrate the potency of decentralized infrastructure by offering IoT connectivity networks and data storage solutions respectively.
Carey praised the impact of DePIN projects in underserved regions, highlighting the potential for critical infrastructure and services to reach those in need. The anticipated growth of this market, projected to reach $3.5 trillion by 2028 according to the “2024 DePIN Development Report,” underscores the immense potential and demand for decentralized infrastructure initiatives.
The increasing prominence of DePIN protocols has caught the attention of layer-1 blockchains, prompting them to focus on optimizing their networks to support such innovations. The Solana Foundation, for instance, is actively working on enhancing its infrastructure to bolster reliability for DePIN applications, reflecting the industry’s commitment to advancing decentralized services.
As the total number of devices across 276 tracked DePIN projects surpasses $18 million and the market capitalization exceeds $29 million, the industry is evidently on an upward trajectory. The allure of DePIN technology lies in its ability to revolutionize infrastructure development, paving the way for a decentralized future.
In conclusion, Borderless Capital’s hefty investment in the third DePIN fund marks a significant milestone in advancing decentralized infrastructure projects and propelling the industry toward greater innovation and growth.
