Blockchain Capital is seeking $700 million across two new funds, signaling renewed venture activity despite tighter fundraising conditions in crypto markets. The raise suggests institutional capital is returning selectively, even as many firms face higher scrutiny from limited partners.
According to Bloomberg, the firm is raising capital for both its second growth fund and its seventh early-stage fund. A source familiar with the matter said deployment has already begun, with the fundraising process expected to close within five to six months.
Is Crypto Venture Funding Entering A New Cycle?
The dual-fund strategy reflects a barbell approach, balancing later-stage scaling opportunities with early-stage bets on emerging protocols and infrastructure. Blockchain Capital manages roughly $2 billion in fee-bearing assets and has backed firms including Coinbase, Circle, Polymarket, and Tether. Its recent activity includes leading a $12 million round for Paxos Labs.
Market data points to a rebound in venture flows. Crypto VC funding reached $2.42 billion in March, up from $683.6 million in February and $1.31 billion in January, according to data. Yet fundraising remains uneven, with many firms reporting longer timelines and stricter capital allocation criteria.
Thomas Klocanas, managing partner at Strobe Ventures, said conditions may improve alongside broader market recovery, though investor expectations have shifted. He indicated that startups now face a higher threshold for capital, reflecting a more disciplined venture environment after previous cycles.
But can large multi-stage raises succeed consistently as limited partners reassess risk exposure in digital assets? The next catalyst will be whether Blockchain Capital closes the full allocation within its stated timeline and how quickly deployed capital translates into new market leaders.
