Cryptocurrencies are making a huge comeback, with AngelList and CoinList launching ways to help crypto-focused founders raise money using cryptocurrencies.
The two companies are collaborating on the launch of the Crypto Special Purpose Vehicle (SPV) and Crypto Roll-up Vehicle (RUV), the companies exclusively shared with TechCrunch on Wednesday.
They said the partnership will give users a way to “raise funds from syndicates and manage investments in crypto startups in a crypto way.” A syndicate is a group of companies or individuals who work together to jointly manage large financial transactions.
According to AngelList, users will now be able to fund crypto SPVs (special purpose vehicles) with stablecoins for $0 fees.
“Investors can raise funds in USDC, making it easier for crypto investors to operate without a bank,” said Raghav Gulati, CEO of CoinList. USDC is a term used to describe a digital dollar, also known as a stablecoin, which is pegged to the dollar and therefore can be exchanged for the US dollar on a 1:1 basis.
Tokens can be distributed in-kind to LPs and are compatible with “many non-U.S. token issuers and investors.” Integration with CoinList's software is “coming soon,” the companies said.
“This model is important because rather than receiving a cash return, investors receive tokens as they become available. along the lines of that,” Gulati told TechCrunch.
Crypto rollup vehicles are designed to collect investments raised by founders for a specific round. The benefit, the companies say, is that startups don't have to worry about “managing compliance for many stakeholders” in the early stages.
“Crypto startups often try to bring on many angel investors. But you can do that using AngelList Crypto RUV,” Gulati said.
Acceptance of cryptocurrencies in the mainstream investor world that AngelList belongs to has wavered during the crypto winter. That's when all of Web3 fell out of favor and industry heavyweights like Sam Bankman-Fried and Binance founder Changpeng Chao were sentenced to prison terms.
But between Bitcoin hitting new all-time highs and the Trump administration clearly showing interest in Bitcoin, cryptocurrencies are poised to make a comeback in the broader tech world.