Borderless Capital

Borderless Capital Research

Investment Thesis

Borderless Capital is a leading Web3-native investment management firm focused on fostering dynamic blockchain ecosystems and supporting the next generation of innovators driving decentralized technologies. Since 2018, the firm has built specialized expertise in Algorand-based projects and Decentralized Physical Infrastructure Networks (DePIN), combining deep protocol knowledge with operator-level support to help founders achieve their full potential.

The firm's investment philosophy centers on three core beliefs:

1. Protocol specialization: Deep expertise in specific blockchains (particularly Algorand) creates better investment outcomes
2. Physical infrastructure convergence: DePIN represents a revolutionary approach to building and maintaining physical infrastructure at lower cost and greater efficiency
3. Builder support: Investors should be active partners who understand both technical and business challenges

Sector Focus

Borderless Capital invests across multiple Web3 sectors with particular specialization in:

Decentralized Physical Infrastructure Networks (DePIN):

• Commodity DePINs (hardware like smartphones, laptops)
• Web 2.5 DePINs (hybrid decentralized/traditional systems)
• Impact-focused infrastructure
• Examples: Helium (wireless), Render Network (GPU computing), GEODNET (location services)

Algorand Ecosystem:

• Blockchain applications and protocols leveraging Algorand
• Business applications on Algorand
• Infrastructure supporting the ecosystem

Digital Asset Treasuries (DATs):

• Treasury optimization for institutions and corporations
• Bitcoin and multi-asset treasury strategies
• Emerging institutional adoption of crypto as reserve assets

Web3 Infrastructure & Services:

• Developer tools and platforms
• Compliance and regulatory technology
• Market infrastructure and data
• Decentralized applications across verticals

Emerging Areas:

• AI-powered crypto compliance and intelligence
• Solana ecosystem (recent focus shift, 2024-2025)
• Enterprise adoption of blockchain technology

Stage Focus

Borderless Capital invests across all stages from pre-seed through growth equity:

• Pre-Seed: Early-stage protocols and applications
• Seed: Foundational projects with initial traction
• Series A/B+: Growth and scaling stage
• Follow-on: Significant ownership stakes in successful portfolio companies

The firm has demonstrated lead and co-lead investing capability across all stages, with reserves for follow-on investments in successful portfolio companies.

Check Size and Deployment

Based on portfolio activity:

• Typical check size: $500K - $5M+ depending on stage
• Fund deployment: Actively deploying across three dedicated DePIN funds (Fund I, II, III at $100M each)
• Total AUM: Over $400M across multiple funds focused on digital assets and Web3
• Total investments: 250+ companies since 2018

The firm has demonstrated capability for both smaller seed checks and larger growth equity rounds (e.g., $500M+ corporate treasury plays).

Lead Tendency

Primary approach: Leads or co-leads rounds

Borderless Capital demonstrates strong lead investor tendencies with active governance participation. The firm:

• Led DePIN Fund III ($100M) with governance partnership
• Actively leads Series A and seed rounds across portfolio
• Takes board seats and advisory positions in portfolio companies
• Partners deeply with founders on operations and strategy

Recent Activity (2024-2026)

Major Recent Announcements:

• September 2024: Announced $100M DePIN Fund III with backing from Peaq, Solana Foundation, Jump Crypto, IoTeX, GSR, and others
• Late 2024: Expanded leadership team and trading operations
• February 2025: Expanded leadership team with new partner and head of trading
• 2025: Leading Cloudburst Technologies Series A (AI-powered crypto compliance)
• 2025: Participated in Avalanche Treasury Co. $675M+ business combination (AVAT)
• 2025: Supporting Solana digital asset treasury ecosystem (Helius, Forward Industries)
• Late 2025: Recent investments in DePIN protocols including XMAQUINA, TenX Protocols

Fund Status: Actively deploying across multiple funds (DePIN I, II, III and broader Web3 funds)

Last Known Activity: January 2026 (ongoing partnerships and new investments)

Notable Recent: Leading $100M DePIN Fund III focused on transforming physical infrastructure through decentralized networks. Portfolio includes Helium (1M+ IoT antennas deployed), Render Network (GPU computing), GEODNET (largest RTK network), DIMO (vehicle data), XNet, Wingbits, and 35+ additional protocol-stage investments.

Portfolio Highlights

High-impact exits and active companies:

• Helium: MVNO partnered with T-Mobile and Telefónica, deployed 1M+ IoT antennas in 18 months (first DePIN success at scale)
• Render Network: Decentralized GPU computing platform
• GEODNET: Largest real-time kinematic (RTK) network globally
• Algorand ecosystem: Early-stage investor in Algorand development, instrumental in ecosystem growth
• Recent active portfolio: XMAQUINA, TenX Protocols, Cloudburst Technologies, treasury protocol investments

Investment breadth: 250+ Web3 investments since 2018 across infrastructure, business applications, and cryptographic protocols

Team & Decision-Making

Key Leadership:

• Arul Murugan: Founding Managing Partner, 20+ years entrepreneurial experience in blockchain
• David García: Co-Founder and Managing Partner, leads investment strategy
• Sean Carey: Partner, Helium co-founder (DePIN Fund III lead)
• Álvaro Gracia: Partner, former head of U.S. investments at Telefónica (DePIN Fund III lead)
• Andrew Dempsey: Partner
• Ryan Silva: Partner and Head of Trading, CFA (institutional adoption focus)
• Corey Casbarro: General Counsel and Chief Compliance Officer, leads SEC compliance
• Patrick O'Kain: General Partner, former DOJ special agent (crypto compliance investments)

Decision Process: Partnership-based with distributed authority. Different partners focus on specific sectors (DePIN, Algorand, Digital Assets) enabling faster decision-making. Demonstrates collaborative investment approach with co-investors.

Team size: 36 employees with infrastructure supporting 250+ portfolio companies

Geographic Focus

Primary markets: US (Miami HQ with operations across major hubs), strong Latin American focus aligned with "borderless" mission

Secondary markets: Europe, Asia for specific DePIN and protocol investments

Global reach: Portfolio spans North America, Europe, Asia, with protocol-layer investments having borderless characteristics

Founder Preferences

Ideal founders:

• Technical founders with deep domain expertise
• Experienced operators who understand infrastructure challenges
• Mission-driven teams focused on solving real-world problems through decentralization
• Founders with track records in relevant industries (e.g., telecom, IoT, enterprise)
• Teams that can execute at scale and navigate regulatory complexity

Anti-thesis:

• Pure financial plays or short-term arbitrage
• Projects without clear product-market fit or use case
• Founders lacking operational experience

Investment Process & Timeline

Speed: Partnership-driven structure enables fast decision-making. Co-investor networks (Jump Crypto, Solana Foundation, etc.) facilitate efficient due diligence

Warm introductions: Not explicitly required given institutional reputation, but co-investor networks often provide natural pathways

Timeline: Based on deal activity, appears to move relatively quickly for sector (4-8 weeks typical)

Notable Differentiators

1. DePIN Specialization: Only one of few VCs with dedicated, multi-fund infrastructure for DePIN investment
2. Protocol-level partnerships: Relationships with Helium, Solana Foundation, Peaq, IoTeX
3. Operator expertise: Partners like Sean Carey (Helium) and Álvaro Gracia (Telefónica) bring building experience
4. Compliance leadership: Deep expertise navigating regulatory landscape (SEC relationships, legal team)
5. Multi-fund strategy: Dedicated vehicles for DePIN, Algorand, Digital Assets enables focused expertise
6. Institutional adoption focus: Early movers on digital asset treasury trend, positioning for institutional money

Sectors and Technologies

Primary Sectors: Infrastructure and developer tools focused on blockchain and decentralized systems

Tech Focus:

• Blockchain infrastructure and protocols
• IoT and distributed hardware networks
• GPU computing and rendering
• Location/mapping technologies
• AI-powered compliance and data

Key Technologies: Algorand, Solana, Helium protocol, decentralized hardware networks

Thesis Evolution

Borderless Capital has evolved from pure Algorand-focused investor (2018-2022) to multi-chain, multi-sector platform:

• 2018-2020: Algorand ecosystem building
• 2021-2022: DePIN discovery and Fund I, II launches
• 2023-2024: DePIN expansion, Solana relationship building
• 2025-2026: Digital asset treasuries, enterprise adoption, AI compliance

Core mission remains consistent: support borderless, decentralized innovation.

Investment Philosophy

Borderless Capital combines:

1. Deep sector expertise (DePIN, Algorand, digital assets)
2. Operational partnership (active support for execution)
3. Regulatory sophistication (SEC-registered, compliance-first)
4. Institutional relationships (co-investor networks, protocol partnerships)
5. Long-term perspective (supporting builders through cycles)

The firm positions itself as a "builders' VC" with operator experience rather than a pure financial investor, particularly in infrastructure and protocol investments where technical execution is paramount.