Blockchain Capital Seeks $700 Million for Two New Crypto Funds

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, announced on April 14, 2026
• ▪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 in March 2026 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