Venture Firm Blockchain Capital Seeks to Secure $700M Across Two Investment Funds
According to sources close to the situation, the venture capital firm has already started allocating portions of the fresh capital, with both fundraising initiatives anticipated to conclude within a six-month timeframe.
According to a Bloomberg report that cites an individual with knowledge of the situation, Blockchain Capital, a venture capital firm specializing in cryptocurrency investments, is currently working to secure an additional $700 million across two newly launched investment funds.
Bloomberg's Tuesday report indicates that the company is seeking capital for two distinct vehicles: its seventh fund focused on early-stage investments targeting experimental or nascent projects, alongside a second growth-oriented fund designed to support more established companies that have already demonstrated market traction.
According to the source, Blockchain Capital had previously accumulated a total of $1 billion designated for cryptocurrency-related investments. While the completion of both new fundraising efforts is projected to occur within the coming six months, the firm has not waited and has already started putting some of the newly raised capital to work.
Venture capital funds serve the critical function of providing investment capital to emerging crypto startups. With more than $2 billion in assets currently under management, Blockchain Capital maintains an impressive portfolio that includes investments in major cryptocurrency exchanges such as Kraken and Coinbase, as well as prominent stablecoin issuers including Circle and Tether.
Blockchain Capital has been contacted by Cointelegraph for additional commentary on this matter.
Average fundraising deal size up 50% in the past 30 days
Even as the cryptocurrency market experiences a downturn, data from market intelligence platform Messari reveals that the average size of crypto funding deals has increased by nearly 50% during the last 30 days.
That said, cryptocurrency projects have managed to raise just $466 million throughout April thus far, representing a significant decline from the $3 billion secured in March. The month's largest transaction was the $1 billion debt financing arranged through investment bank Morgan Stanley for Core Scientific, a company operating in both Bitcoin mining and artificial intelligence infrastructure.
Analysts at Messari noted that "Capital concentration is heavily skewed by debt and late-stage mega-rounds, masking a more modest median deal size."
They further elaborated, stating "While total capital inflows were bolstered by massive transactions like Core Scientific's $1 billion post-IPO debt financing and Polymarket's $600 million undisclosed round, the majority of activity remains in the sub-$10 million range."
The monthly volume of cryptocurrency fundraising has also experienced a substantial cooling period compared to its historical peaks during November 2021 and May 2022, time periods when monthly funding routinely surpassed the $4 billion threshold.
Nevertheless, Messari's analysis indicates that institutional infrastructure and fintech-oriented cryptocurrency services, including platforms like financial service provider Slash and cross-border payment solution OpenFx, continue to secure substantial funding rounds. Capital appears to be gravitating toward platforms that serve as bridges connecting traditional financial systems with digital asset ecosystems.