Blockchain Capital, a crypto-focused investment firm, has successfully raised $580 million for two new funds. The funding is divided into $380 million for their sixth early-stage fund, targeting newer companies and protocols in pre-seed and Series A rounds, and $200 million for their opportunities fund, focusing on late-stage investments from Series B onwards.
Despite the relatively subdued state of the digital asset market in the past year, the amount raised indicates continued interest in investment. Following a decline in the crypto market throughout much of 2022, with the collapse of FTX in November as a significant event, digital assets have struggled to break free from a narrow trading range in recent months, despite a strong start to 2023. Bitcoin (BTC), for instance, has remained within the $25,000-$30,000 range for almost the entire last six months.
According to Jason Di Piazza, the head of capital formation at Blockchain Capital, most of their limited partners consist of traditional institutional investors, including university endowments, private foundations, financial institutions, sovereign wealth funds, and U.S. pension plans. In addition to these, the firm also collaborates with non-traditional strategic investors who are leaders in their respective sectors.
While these investors tend to be more tactical in their fund commitments, the long-term nature of Blockchain Capital’s funds fosters enduring partnerships that can accelerate growth opportunities and enhance competitive positioning for the companies and protocols supported by the funds.
Notably, payment giants Visa and PayPal participated in Blockchain Capital’s fifth early-stage fund in 2021, but their involvement in the new funds has yet to be confirmed by the firm.
Blockchain Capital has recently led funding rounds such as a $115 million Series C investment in Tools for Humanity, the developer of Worldcoin, and a $40 million Series A investment in RISC Zero, a provider of crypto infrastructure.