Blockchain Capital Raises $580 Million for Crypto Investment Funds
Published on October 5, 2023
Introduction
Blockchain Capital, a San Francisco-based venture capital firm, has successfully raised $580 million for two new crypto investment funds. This comes at a time when venture investment in crypto startups has been declining.
Background
Founded in 2013, Blockchain Capital has announced its sixth early-stage venture fund and a first opportunity fund, with a total capital raise of $580 million. Notably, payments giant Visa has contributed to this funding round. Visa and PayPal were also investors in Blockchain Capital’s previous $300 million fund.
Decline in Crypto Startup Investments
In the past year, venture investment in crypto startups has significantly decreased. In August, less than $500 million was invested in the space, marking the lowest level in over two years.
Blockchain Capital’s Activity
Despite the decline in the industry, Blockchain Capital has remained active. The firm has led several notable later-stage funding rounds in recent months, including a $115 million raise by Tools For Humanity and a $40 million raise by RISC Zero.
Focus on Specific Crypto Startups
Blockchain Capital has focused its investments on crypto startups that specialize in infrastructure, gaming, DeFi, consumer, and social sectors, according to the firm’s announcement.
Opportunities in the Market
Blockchain Capital stated, “Over the past 20 months, we’ve invested more capital into the next generation of innovators than any other time in our history. The reason is simple: today’s market offers unprecedented opportunities, driven by an influx of highly skilled founders who are developing a diverse range of innovative technologies.”
Volatility and Lessons Learned
The firm acknowledges the volatility in the crypto sector over the past year and emphasizes the importance of long-term thinking. They believe that many have misjudged the nascent technology due to short-term thinking.
Conclusion
Blockchain Capital’s successful funding round demonstrates continued interest and investment in the crypto industry. Despite the overall decline in venture investment, the firm remains optimistic about the opportunities in the market.
