Blockchain Capital, a crypto VC firm, raises $580 million for two new funds.

A cryptocurrency-focused investment business called Blockchain Capital has withstood the market’s slump to raise $580 million for two new funds. The funding is divided between $200 million for its opportunities fund and $380 million for its sixth early-stage fund, which will focus on late-stage investments beginning with Series B. This fund will invest in emerging companies and protocols.
Despite the somewhat muted status of the digital asset market for much of the past year, the amount raised indicates there is still a desire for investment. Digital assets have failed to break free of a limited trading range in recent months after a strong start to 2023 after the crypto market dropped for the most of 2022, peaking with the crash of FTX in November. For instance, the price of Bitcoin (BTC) has been essentially constant over the past six months between $25,001 and $30,001 per unit.
According to the head of capital formation at the company, Jason Di Piazza, the majority of Blockchain Capital’s limited partners are conventional institutional investors, such as university endowments, private foundations, financial institutions, sovereign wealth funds, and U.S. pension plans.
“Additionally, we have non-traditional, strategic investors who are category leaders within their specific sectors,” Di Piazza said. “While these investors are generally more tactical in their fund commitments, the long-term nature of our funds lead to long-term partnerships that can help accelerate growth opportunities and improve competitive positioning for our fund’s companies and protocols.”
These include the two largest payment companies in the world, Visa and PayPal, who joined Blockchain Capital’s sixth early-stage fund in 2021. According to the corporation, they haven’t made a commitment to either of the new ones. Recent fundraising rounds headed by Blockchain Capital include a $115 million Series C investment in Worldcoin developer Tools for Humanity and a $40 million Series A investment in cryptocurrency infrastructure provider RISC Zero.