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The fundraising is to expand Recursive Capital’s investments in bitcoin companies exclusively on the African continent.
More Support for Bitcoin Companies in Africa
Recursive Capital, a venture capital firm that specializes in funding bitcoin businesses in Africa announced the Fund I’s first close on Saturday, Nov. 30.
Block Chairman Jack Dorsey, chairman of Fortress Investment Group, Peter Briger Jr., and Jeff Booth, founding partner at Ego Death Capital were the anchor investors in this round.
The fund’s goal was discussed by the company’s CEO, Abubakar Nur Khalil, a Nigerian Bitcoin Core contributor who also acts as the acting CEO of ₿trust, a Bitcoin non-profit financed by Jay-Z and Jack Dorsey that provides funding to African Bitcoin developers.
“The focus of Fund I is to lay the foundations for a thriving Bitcoin ecosystem in Africa that will lead the world in innovation, growth, and impact. I want Recursive and the companies in its portfolio to be a source of signal on the continent for investors seeking to benefit from exposure to a once-in-a-generation asset.”
Fund I is intended to assist businesses that provide Bitcoin infrastructure (such as bitcoin miners), products with business applications (such as bitcoin wallets and exchanges), and advanced technological development on the Fedimint and Lightning Network protocols.
The fund primarily makes equity investments, averaging between $50,000 and $100,000 for each of the companies in its portfolio. It does not participate in alternative financing, tokenized securities, or altcoins as payment for investments.
Since Fund I’s inception, Recursive has made investments in Bitnob, which provides cross-border payments and bitcoin-native financial services; Fedi, which has developed a “Community Superapp” that permits collaborative custody of bitcoin; and Synota, which simplifies utility bill payments via the Lightning Network.
Recursive Capital also intends to start Recursive Labs in order to continue helping the founders of the businesses in its portfolio by offering them strategic insights, mentorship, and advice while expanding funding for bitcoin mining companies.