Blockchain Capital is quietly lining up $700 million across two new funds as venture appetite in crypto narrows toward fewer, bigger bets.
According to Bloomberg, the veteran firm is raising capital for its seventh early-stage fund — aimed at experimental and nascent projects — alongside a separate growth fund targeting companies that already have market traction. Blockchain Capital, which manages more than $2 billion in assets, has already begun deploying portions of the new capital even though the official closes for the funds are still roughly six months out.
The move underscores the firm’s long-standing role in crypto venture: early backing of industry pillars such as Kraken and Coinbase, plus stablecoin players Circle and Tether, has helped build Blockchain Capital’s reputation as a cornerstone investor. Earlier fundraising rounds brought in a combined $1 billion, and the latest $700 million raise is expected to follow in that vein.
The timing reflects a broader shift in the market. Messari data show the average crypto fundraising deal size has jumped nearly 50% in the past 30 days — even as total capital raised has fallen sharply month over month. Monthly inflows dropped to about $466 million in April, a steep decline from roughly $3 billion in March. Much of March’s capital was driven by outsized transactions, including Core Scientific’s $1 billion debt financing arranged through Morgan Stanley.
Still, fundraising today is nowhere near the heights of past cycles. Monthly capital inflows remain well below peaks seen in late 2021 and mid-2022, when funding regularly topped $4 billion. That pattern suggests investors are concentrating their resources into fewer, more established opportunities rather than spreading bets widely across the ecosystem.
Certain segments, however, continue to attract larger checks — notably institutional infrastructure and fintech-linked crypto services that bridge traditional finance and digital assets. A recent example: financial platform Slash raised $100 million at a $1.4 billion valuation earlier this month.
What to watch next: whether Blockchain Capital’s dual-fund strategy — pairing experimental early-stage exposure with growth-stage allocations — helps it capture outsized returns in an era of concentrated capital, and whether larger deal sizes persist even as total market inflows stay muted.
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