Cryptocurrency venture capital firm Blockchain Capital has decided to raise $700 million in two new funds, as investment appetite shows signs of concentration despite a slowdown in overall deal flow.
Summary
- Blockchain Capital has raised plans to secure $700 million in two funds targeting early-stage and growing crypto startups.
- The average crypto transaction size has increased by almost 50% over the past 30 days, even though total funding in April fell to around $466 million.
Bloomberg, citing a person familiar with the matter, reported that the company is currently in the process of securing capital for its seventh seed fund focused on experimental and early-stage projects, alongside a separate growth fund targeting companies that already have traction in the market.
Managing a portfolio of more than $2 billion in assets, the company has already begun implementing some of this new capital, although the official closing of the funding rounds remains six months away. Early support for major industry pillars such as exchanges Kraken and Coinbase, alongside stablecoin leaders Circle and Tether, solidified the company’s reputation as a cornerstone of crypto venture capital.
Previous fundraising rounds have raised a total of $1 billion, with the latest round expected to close within the next six months. Capital deployment has already begun in some cases, indicating early conviction in pipeline opportunities.
Transaction size increases even as total funding slows
Across the market, trading activity took a mixed turn. Data from Messari shows that the average size of crypto fundraising deals increased by almost 50% over the past 30 days, even though total capital raised declined sharply month-over-month.
The increase in trading volume occurred despite a slowing market where total monthly inflows fell to $466 million in April, a sharp decline from the $3 billion recorded in March. A significant portion of that capital came from large deals, including Core Scientific’s $1 billion debt financing arranged through Morgan Stanley.
However, fundraising figures remain well below those recorded in previous cycles. Monthly capital inflows have slowed significantly from peaks in late 2021 and mid-2022, when funding regularly exceeded $4 billion.
However, certain segments continue to attract interest. Fintech-related institutional infrastructure and crypto services continue to face greater scrutiny, particularly platforms that connect traditional financial systems to digital asset markets.
Examples include financial platform Slash, which managed to raise $100 million at a valuation of $1.4 billion earlier this month.
