Blockchain Capital Secures $580 Million for Two New Crypto Venture Funds
Blockchain Capital, a specialized investment entity with a focus on the cryptocurrency sector, has triumphed in raising a substantial $580 million for the inception of two novel funds. This achievement underscores the firm's resilience in an industry that has grappled with its fair share of adversities.
The amassed funds are divided into distinct allocations: a staggering $380 million earmarked for its sixth early-stage fund, which will specifically target nascent enterprises and protocols in their pre-seed and Series A stages. Concurrently, $200 million is set aside for its opportunities fund, which will zero in on later-stage investments, commencing from Series B onwards.
This impressive feat in fundraising attests to a sustained interest in investments, even amidst the comparatively subdued performance of the digital asset market in the preceding year. After a period of downturn in 2022, culminating in the collapse of FTX in November, digital assets have grappled with a restricted trading range in recent months, despite a promising start in 2023. For example, Bitcoin (BTC) has largely oscillated within the range of $25,000 to $30,000 for nearly the entirety of the past six months.
A majority of Blockchain Capital's limited partners comprise well-established institutional investors, including university endowments, private foundations, financial institutions, sovereign wealth funds, and U.S. pension plans. This disclosure was conveyed by Jason Di Piazza, the firm's head of capital formation, in a statement conveyed to Bitsday via electronic correspondence.
Di Piazza further emphasized, "Furthermore, we have unconventional, strategic investors who hold leading positions within their respective sectors. While these investors tend to be more tactical in their fund commitments, the enduring nature of our funds paves the way for enduring partnerships that can expedite growth opportunities and enhance the competitive standing of our fund's enterprises and protocols."
Among the noteworthy funding endeavors led by Blockchain Capital are the substantial $115 million Series C investment in Worldcoin's developer, Tools for Humanity, and the substantial $40 million Series A investment in the crypto infrastructure provider, RISC Zero. Notably, industry stalwarts Visa and PayPal, who enlisted in Blockchain Capital's fifth early-stage fund in 2021, have yet to confirm their participation in either of the new funds, as per information provided by the firm to Bitsday.