Blockchain Capital is raising roughly $700 million across two new funds as it doubles down on crypto investing, Bloomberg reports. According to a person familiar with the matter, the veteran venture firm is simultaneously pursuing its seventh early‑stage fund and a second growth fund — and has already put some of the fresh capital to work.
Why it matters
- The raise builds on Blockchain Capital’s existing portfolio and more than $2 billion in assets under management, reinforcing its status as one of crypto’s longest‑running VCs.
- The firm stayed active this week, leading a reported $12 million round for Paxos Labs, and its track record includes early bets in Coinbase, DeFi players 1inch and Aave, and stablecoin issuers Circle and Tether.
Fundraising comes amid a choppy crypto‑VC landscape
- Monthly crypto‑VC flows have swung widely this year: $1.31 billion in January, $683.6 million in February, jumped to $2.42 billion in March, then fell to roughly $466 million in April (industry data).
- Still, big banks see crypto regaining momentum in fintech investment — a JP Morgan report finds crypto accounts for about $3.5 billion, or 45%, of year‑to‑date fintech funding.
Broader industry backdrop
- Institutional adoption and new products have helped reignite capital flows: public companies now hold billions in Bitcoin, and crypto investment vehicles continue to expand (including three altcoins recently getting leveraged ETFs).
- Treasury programs and corporates are branching into venture, too — Tokyo‑listed Metaplanet announced a new venture arm planning to deploy about $25 million into Bitcoin financial infrastructure.
Risks and signals
- The sector’s recovery is uneven and not without headlines: high‑profile thefts and security incidents continue to underline operational and custody risks — one venture firm founder even offered a bounty to recover about $42 million in stolen crypto.
Bottom line
Blockchain Capital’s dual fundraise signals confidence from a major incumbent and could catalyze more early‑ and growth‑stage activity across exchanges, DeFi, stablecoins and infrastructure. Still, investors are navigating a volatile funding environment and ongoing security and regulatory uncertainties as the capital markets for crypto continue to evolve.
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