Escape Velocity, a crypto-focused venture capital firm, has raised nearly $62 million for a second fund dedicated to Decentralized Physical Infrastructure Network (DePIN) projects and other crypto-native ventures. The vehicle closed in December and counts notable backers among its roster, including Marc Andreessen of Andreessen Horowitz and Micky Malka of Ribbit Capital, according to a Fortune exclusive. A fund-of-funds participant, Cendana Capital, contributed about $15 million to the vehicle, underscoring cross-sector support for infrastructure-backed crypto networks. The fundraising underscores ongoing appetite for DePIN, even as broader crypto and technology funding cools, with Escape Velocity signalling a longer-term strategy focused on tangible asset networks rather than purely speculative tokens.

Key takeaways

• The fund marks Escape Velocity’s second DePIN-focused vehicle and closed in December, with marquee investors including Marc Andreessen and Micky Malka; Cendana Capital contributed $15 million.
• Escape Velocity’s latest data-backed push aligns with research showing DePIN’s combined market capitalization around $10 billion and on-chain revenue of about $72 million in 2025, per the joint State of DePIN report from Escape Velocity and Messari.
• Despite broad token-price declines across the sector, revenue-generating DePIN networks have proven more durable, suggesting real-world utility can persist even as markets reprice risk assets.
• Analysts point to regulatory-clarity hubs and deployment demand—especially in the United Arab Emirates and Singapore—as accelerants for DePIN adoption beyond traditional startup ecosystems.
• The fundraising illustrates a bifurcated market: capital for assets and infrastructure tied to the physical world, rather than speculative token launches alone.

Sentiment: Neutral

Market context: The news reflects selective venture activity in crypto-native sectors where tangible utility meets regulatory clarity. While broad funding for crypto remains constrained, DePIN-focused capital shows a willingness to back long-horizon infrastructure projects that integrate physical assets with blockchain protocols.

Why it matters

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

From an investor perspective, the move delineates a clear divergence within crypto markets. While speculative tokens have faced sharp declines from their late-2024 peaks, networks anchored to real-world infrastructure continue to generate on-chain activity and revenue that can outlast sentiment-driven cycles. Industry observers note that DePIN’s maturation hinges on regulatory clarity and deployment cadence; jurisdictions like the UAE and Singapore are highlighted as conducive environments for pilots and partnerships with utilities, telecoms, and asset owners. The evolving regulatory backdrop could determine whether DePIN transitions from a novelty to a repeatable, scalable model across varied asset classes.

The broader industry context matters because it frames how risk capital evaluates opportunity. The DePIN thesis hinges on the idea that tokenized incentives can align disparate stakeholders—owners of physical assets, operators of networks, and end users—around shared value creation. Yet the literature also emphasizes the need for real-world utility over hype, a sentiment echoed by practitioners who warn against token launches built on optimism rather than deliverables. In this environment, Escape Velocity’s commitment to backing founders with tangible deployment plans—rather than purely token-centric ventures—represents a cautious, infrastructure-first approach that could shape future venture activity in the space.

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

Beyond capital, the DePIN narrative is increasingly about where networks can operate and be monetized. The joint State of DePIN report, produced by Escape Velocity and Messari, underscores that while token prices across the sector have tumbled, revenue-producing networks have continued to function. The sector’s overall on-chain revenue in 2025 is estimated at tens of millions, a modest figure in the context of broader crypto markets, but a signal of ongoing activity at the intersection of physical infrastructure and digital incentives. The report also highlights a return-to-basics emphasis among builders: create real-world utility, demonstrate scalable deployment, and then seek institutional alignment around governance and monetization. These dynamics help explain why a late-2020s funding cycle has revived around DePIN despite a broader macro pullback in risk assets.

Analysts also note that a fair share of DePIN tokens remain deeply discounted versus their all-time highs, a reality that reflects the dislocation between speculative cycles and real-world adoption. Yet the durability of certain DePIN networks—especially those tied to essential services or infrastructure—points to a potential inflection if deployment velocity accelerates and regulatory clarity continues to improve. In practice, this could translate into more pilots in regulated markets and greater collaboration with public or semi-public bodies seeking resilient, asset-backed technology layers for critical functions.

In sum, Escape Velocity’s fund addition reinforces a bifurcated market dynamic: capital continues to flow into infrastructure-focused crypto ventures where there is measurable asset-backed value, while token-only narratives face increasing scrutiny. The UAE and Singapore emerge as notable catalysts in this shift, offering clearer rules and faster execution paths for projects that seek to combine physical networks with blockchain-enabled incentives. As DePIN evolves from concept to execution, observers will be watching for concrete deployments, partnerships, and regulatory signals that validate the model beyond market symbolism.

What to watch next

• Announcements of DePIN network deployments and pilot projects funded by Escape Velocity’s new vehicle in 2026.
• New partnerships or co-investments with UAE- or Singapore-based institutions aimed at scaling DePIN deployments.
• Updated data from the State of DePIN and DePINscan reflecting deployment activity and on-chain economics.
• Regulatory developments in major markets that clarify the treatment of tokenized infrastructure projects and associated financing structures.
• Follow-on rounds or exits from Escape Velocity-backed DePIN projects to gauge real-world traction beyond fundraising narratives.

Sources & verification

• Fortune exclusive reporting on Escape Velocity’s $62 million fund and December close, with investor names including Marc Andreessen and Micky Malka.
• Escape Velocity and Messari, State of DePIN report detailing ~US$10 billion sector market cap and ~US$72 million in on-chain revenue in 2025.
• DePINscan data illustrating market capitalization below US$9 billion and historical peak above US$43 billion in late 2024.
• Regulatory context in the United Arab Emirates and Singapore described as favorable for DePIN deployment.
• Cointelegraph coverage referenced in the source material discussing HashKey Capital’s bullish stance on DePIN.