Key Takeaways
- • Escape Velocity closed its second fund at $61.74 million in December 2025, targeting decentralized physical infrastructure networks (DePIN) alongside broader crypto investments, despite significant headwinds in the sector.
- • Lead institutional backers include venture giant Marc Andreessen, fintech investor Micky Malka of Ribbit Capital, and fund-of-funds manager Cendana, which contributed the largest check at $15 million.
- • DePIN token prices remain depressed, with projects like Helium (decentralized cell phone service) and Hivemapper (decentralized mapping) trading near all-time lows, signaling broad market skepticism despite Escape Velocity's conviction.
- • The fund targets infrastructure applications spanning Wi-Fi networks, cell phone plans, drones, telescopes, and solar energy—sectors where decentralized peer-to-peer models aim to replace traditional centralized providers.
- • Cofounder Mahesh Ramakrishnan positions the investment thesis around cyclical crypto sentiment, arguing that despite current bearish conditions, DePIN represents an emerging category with mainstream potential yet to materialize.
Summary
Escape Velocity, a venture firm focused on crypto and decentralized infrastructure, closed its second investment fund at $61.74 million in December 2025, bucking sector-wide headwinds to back founders building decentralized physical infrastructure networks (DePIN). The funding round attracted marquee institutional investors, including venture powerhouse Marc Andreessen and prominent fintech investor Micky Malka of Ribbit Capital. Fund-of-funds manager Cendana led the round with a $15 million commitment, the largest single check in the fund.
The timing of the raise highlights a widening divergence in crypto market sentiment. While Bitcoin has stabilized at the start of 2026, alternative crypto niches—particularly DePIN—have faced sustained selling pressure. Tokens for established DePIN projects such as Helium, a peer-to-peer decentralized cellular network, and Hivemapper, a decentralized mapping service, are trading near all-time lows. This backdrop underscores the contrarian positioning of Escape Velocity's thesis.
DePIN projects aim to decentralize traditionally centralized infrastructure by enabling peer-to-peer service provision across Wi-Fi networks, cellular plans, drone operations, and physical sensing applications. Participants are typically incentivized through cryptocurrency rewards. Despite the conceptual appeal and investor interest, no DePIN project has yet achieved mainstream adoption or market validation, according to the primary source.
Mahesh Ramakrishnan, cofounder of Escape Velocity, characterized the investment approach as conviction-driven across cyclical sentiment. "I think the nature of crypto and doing extremely-out-there investing is that there will be cycles of feeling extremely bearish and cycles of feeling extremely bullish," he stated. Ramakrishnan, widely recognized as a prominent DePIN advocate, maintains that the infrastructure category remains fundamentally viable despite current market conditions and token performance weakness.
The fund's mandate extends beyond DePIN to include broader crypto opportunities, reflecting a diversified but conviction-led approach to emerging decentralized technologies.
The timing of the raise highlights a widening divergence in crypto market sentiment. While Bitcoin has stabilized at the start of 2026, alternative crypto niches—particularly DePIN—have faced sustained selling pressure. Tokens for established DePIN projects such as Helium, a peer-to-peer decentralized cellular network, and Hivemapper, a decentralized mapping service, are trading near all-time lows. This backdrop underscores the contrarian positioning of Escape Velocity's thesis.
DePIN projects aim to decentralize traditionally centralized infrastructure by enabling peer-to-peer service provision across Wi-Fi networks, cellular plans, drone operations, and physical sensing applications. Participants are typically incentivized through cryptocurrency rewards. Despite the conceptual appeal and investor interest, no DePIN project has yet achieved mainstream adoption or market validation, according to the primary source.
Mahesh Ramakrishnan, cofounder of Escape Velocity, characterized the investment approach as conviction-driven across cyclical sentiment. "I think the nature of crypto and doing extremely-out-there investing is that there will be cycles of feeling extremely bearish and cycles of feeling extremely bullish," he stated. Ramakrishnan, widely recognized as a prominent DePIN advocate, maintains that the infrastructure category remains fundamentally viable despite current market conditions and token performance weakness.
The fund's mandate extends beyond DePIN to include broader crypto opportunities, reflecting a diversified but conviction-led approach to emerging decentralized technologies.
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