Venture capital giant Blockchain Capital is currently seeking $700 million to establish two new funds, as reported by Bloomberg. The firm is working on its seventh early-stage fund and a second growth fund simultaneously, with some capital already being allocated.
This fundraising initiative adds to Blockchain Capital’s already substantial $2 billion in assets under management. Recently, the company led a $12 million investment round for Paxos Labs, highlighting its active engagement in the crypto sector.
Blockchain Capital’s venture portfolio features prominent names like Coinbase, DeFi platforms 1inch and Aave, and stablecoin providers Circle and Tether, marking it as one of the leading players in crypto venture capital.
The fundraising comes during a period of fluctuating conditions for crypto VC funding. According to industry data, funding surged to $2.42 billion in March from $683.6 million in February and $1.31 billion in January, before falling to approximately $466 million in April. A recent JP Morgan report highlighted that crypto has regained its position as a primary driver of fintech investment, comprising 45% of all fintech funding this year, totaling around $3.5 billion.
Additionally, crypto treasury firms are expanding into venture capital. For instance, Metaplanet, listed in Tokyo, recently introduced a venture division with plans to invest about $25 million in Bitcoin financial infrastructure projects.
Blockchain Capital’s new funds align with significant institutional adoption of cryptocurrencies. Public companies have amassed substantial Bitcoin holdings, and the range of crypto investment products is expanding. This month saw three altcoins launching leveraged ETFs, indicating increased demand for such investment vehicles. The sector has also faced notable security challenges, including an offer from a venture firm founder to reward those who can recover $42 million in stolen cryptocurrency.