Blockchain Capital Seeks $700M for Two New Crypto Funds

Blockchain Capital is raising $700 million, according to two new funds Bloomberg.

I quote a source familiar with the matter: Bloomberg reported that the venture capital firm is simultaneously pursuing its seventh seed fund and its second growth fund, and has already deployed some of the new capital.

The fundraising effort builds on Blockchain Capital’s existing portfolio over $2 billion in assets under management. The company demonstrated its continued investment activity last week by leading a $12 million funding round for Paxos Labs industry reports.

The VC of Blockchain Capital portfolio includes crypto exchange Coinbase, DeFi platforms 1inch and Aave, and stable currency issuers Circle and Tether, making it one of the most established venture capital players in the industry.

Crypto venture capital

The fundraising effort comes amid volatile conditions for crypto venture capital. Crypto VC funding rose from $683.6 million in February to $2.42 billion in March and $1.31 billion in January, before falling to around $466 million in April. industry data.

According to a recent JP Morgan reportcrypto has “reemerged as a dominant driver of fintech financing,” accounting for some $3.5 billion – 45% of all fintech investments – year to date. Crypto treasury firms are also expanding into venture capital, with Tokyo-listed Metaplanet last month unveiling a venture capital arm with plans to deploy about $25 million into companies building Bitcoin’s financial infrastructure.

Blockchain Capital’s new funds follow a period of significant institutional adoption of cryptocurrencies. Public companies now hold billions in Bitcoin portfolios, while crypto investment products continue to grow. Three altcoins received leveraged ETFs this month, reflecting growing demand for crypto investment vehicles. The industry has also seen high-profile security incidents, including a venture capital firm founder offering a bounty to recover $42 million in stolen crypto.