Digital Assets: Blockchain Capital Raises $580M For Two New Crypto Funds

September 19, 2023 | Digital Assets, Latest News, News

“Today’s market offers unprecedented opportunities, driven by an influx of highly skilled founders who are developing a diverse range of innovative technologies.” – Blockchain Capital.

Blockchain Capital, a prominent crypto-focused investment firm, has achieved a remarkable feat by raising $580 million for two new investment funds dedicated to various sectors including infrastructure, gaming, DeFi (Decentralized Finance), and consumer technologies.

The first fund, amounting to $380 million, represents the firm’s sixth early-stage fund. It will primarily focus on emerging companies and protocols in pre-seed and Series A funding rounds. This fund follows the firm’s fifth early-stage fund, launched in June 2021, which was valued at $300 million.  (CryptoNews)

The second fund, totaling $200 million, is designed as an opportunities fund. It will target late-stage investments starting from Series B and beyond, providing access to companies with significant prior funding.

These allocated funds are earmarked for six key sectors: decentralized finance, centralized finance, centralized infrastructure, decentralized infrastructure, gaming, and consumer/social technologies.

Blockchain Capital’s mission, as stated in a press release, is to empower individuals by giving them control over their digital and financial lives through innovative blockchain-enabled applications and services. This vision reflects their dedication to a democratized and distributed future, guiding their investment decisions.

Despite the challenges faced by the crypto market in 2022, which included the collapse of FTX in November, this successful fundraising signifies a sustained interest in crypto investment. Digital assets, particularly Bitcoin (BTC), have grappled with limited price movement over the past six months, remaining within the $25,000 to $30,000 range.

Blockchain Capital’s recent fundraising achievement marks a significant milestone in the cryptocurrency and blockchain industry, with these funds being among the largest in the sector’s history. However, it’s important to note that the firm’s intention is not to continually expand the size of its funds. Spencer Bogart, one of the firm’s partners, emphasized that they don’t plan to diversify into areas like AI or become a hedge fund trading tokens. Future funds are unlikely to be significantly larger than the recently closed ones.

Blockchain Capital has also shifted its investment approach, taking a leading role in most of the rounds it participates in. This involves committing over 50% of the funding, setting pricing, drafting term sheets, and securing board seats. This strategic shift allows the firm to exercise greater governance oversight and access more allocation opportunities in various investments.

The firm’s limited partners comprise traditional institutional investors such as university endowments, private foundations, financial institutions, sovereign wealth funds, and U.S. pension plans. Additionally, Blockchain Capital collaborates with non-traditional, strategic investors who play a pivotal role in fund commitments.

Notably, payment giants Visa (NYSE: V) and PayPal (NASDAQ: PYPL) were part of Blockchain Capital’s fifth early-stage fund in 2021, highlighting the interest and support from established players in the financial industry.

In recent times, Blockchain Capital has led funding rounds, including a substantial $115 million Series C investment in Worldcoin developer Tools for Humanity and a $40 million Series A investment in crypto infrastructure provider RISC Zero.

Related Story: PayPal Is The First Major Finance Company In The USA To Issue A Stablecoin

Photo by Shubham Dhage on Unsplash

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