Blockchain Capital Raises $580 Million in 2 New Funds

Blockchain Capital, a venture capital (VC) firm dedicated to driving the global transition to decentralized, blockchain-based systems, has announced the closing of two new funds.

The firm’s sixth early-stage fund and its first opportunity fund have raised a total of $580 million, the VC firm said in a Monday (Sept. 18) blog post.

“We are especially grateful to have achieved the largest fundraise in our 10-year history during this bear market, as it reflects our investors’ trust in our long-term perspective and experience,” Blockchain Capital said in the post.

The crypto market’s volatility over the past 20 months has underscored the dangers of short-term thinking, according to the post. However, Blockchain Capital is committed to identifying quieter, fundamental indicators of long-term value creation. This approach is reminiscent of the early years of the internet, where similar patterns emerged before the eventual emergence of groundbreaking technologies.

Blockchain Capital’s investment strategy has been focused on sectors such as infrastructure, gaming, DeFi, and consumer and social sectors, the post said. However, its ultimate goal goes beyond sectors. The firm aims to empower individuals by granting them control over their digital and financial lives through blockchain-enabled applications and services.

By harnessing blockchain technology, Blockchain Capital seeks to realign incentives, rebuild user trust, and redefine the social contract in the digital world, per the post.

The firm’s dedication to their mission goes beyond financial support, according to the blog post. They engage with leading founders, developers, policymakers and researchers to identify and nurture the next wave of breakthroughs.

This fundraise comes at a time when there has been a sharpened focus on belt-tightening among venture capital investors due to the rising interest rates, high inflation and lower consumer spending seen over the past year.

In this challenging environment, many FinTechs have turned to angel investing, government funds, corporate partnerships and other alternative options as they seek avenues for growth and survival.