Blockchain Capital Seeks $700 Million for Two New Crypto Funds

Apr 23, 2026

San Francisco-based Blockchain Capital is raising $700 million across its seventh early-stage fund and second growth fund, with the fundraising expected to close within five to six months. The firm, which manages over $2 billion in assets and holds stakes in major crypto companies including Coinbase, Circle, Tether, 1inch, and Aave, has already begun deploying some of the new capital, including leading a $12 million round for Paxos Labs last week. The fundraising comes amid volatile crypto venture capital markets, with funding surging to $2.42 billion in March 2025 before dropping to $466 million in April 2025. Crypto now represents 45% of all fintech investment in 2025 at $3.5 billion, as institutional players like Tokyo-listed Metaplanet launch dedicated venture arms and public companies accumulate billions in Bitcoin portfolios.

Blockchain Capital's $700 Million Fundraising Initiative

▪Blockchain Capital led a $12 million funding round for Paxos Labs last week.
▪Blockchain Capital has over $2 billion in assets under management.
▪Blockchain Capital is raising $700 million across two new funds.
▪Blockchain Capital's portfolio includes DeFi platforms 1inch and Aave.

Current State of Crypto Venture Capital Market

▪Crypto venture capital funding dropped to about $466 million in April 2025.
▪Crypto venture capital funding was $1.31 billion in January 2025.
▪Crypto accounted for $3.5 billion of fintech investment in the year to date, representing 45% of all fintech investment.
▪Crypto venture capital funding climbed to $2.42 billion in March 2025 from $683.6 million in February 2025.
▪Tokyo-listed Metaplanet unveiled a venture arm last month with plans to deploy around $25 million into companies building Bitcoin financial infrastructure.

Broader Institutional Crypto Adoption Trends

▪A venture firm founder offered a bounty to recover $42 million in stolen crypto.

Perspective of Blockchain Capital

▪Blockchain Capital is confident enough in the crypto market to pursue its largest fundraising effort to date at $700 million.

Perspective of Crypto venture capital investors

▪The crypto venture capital market experienced a 254% surge from February to March 2025, suggesting renewed investor confidence.
▪Crypto's dominance of 45% of all fintech investment in 2025 demonstrates institutional capital is flowing disproportionately to blockchain ventures.
▪The sharp drop in crypto venture funding to $466 million in April 2025 indicates continued volatility and uncertainty in the sector.

Perspective of Public companies investing in crypto

▪Metaplanet's launch of a $25 million venture arm signals that public companies are moving beyond passive Bitcoin holdings to active venture investing.