The majority of the firm’s limited partners consist of conventional institutional investors, such as university endowments, private foundations, financial institutions, sovereign wealth funds, and U.S. pension plans.
Blockchain Capital, the resilient crypto-focused investment powerhouse, has successfully raised an impressive $580 million for two cutting-edge funds, confidently defying the prevailing market sentiment.
A substantial chunk of this funding, a commanding $380 million, is designated for our sixth early-stage fund. This fund, primed to propel the most promising new companies and pioneering protocols in the pre-seed and Series A rounds, signals our commitment to nurturing the future of blockchain innovation. In addition, we’ve earmarked $200 million for our opportunities fund, strategically positioned to capitalize on late-stage investment opportunities, starting from Series B onwards.
The substantial amount we’ve secured unequivocally demonstrates that the appetite for investment in the blockchain space remains robust, even in the face of the relatively subdued digital asset market over the past year. Despite the crypto market’s challenges throughout 2022, reaching its nadir with the FTX collapse in November, digital assets have persistently navigated a narrow trading range in recent months, following a resounding start to 2023. A case in point is Bitcoin (BTC), which, for nearly the last six months, has been locked within the $25,000 to $30,000 range.
It’s worth noting that a majority of our limited partners are established institutional investors, including prestigious entities such as university endowments, private foundations, esteemed financial institutions, sovereign wealth funds, and U.S. pension plans. Jason Di Piazza, our Head of Capital Formation, emphasized in an emailed statement to CoinDesk that we also boast non-traditional, strategic investors who are preeminent leaders within their specific sectors. While these investors may exhibit a more tactical approach to fund commitments, our long-term perspective and commitment foster enduring partnerships that catalyze growth opportunities and enhance the competitive positioning of the companies and protocols within our funds.
Notably, industry titans like Visa and PayPal, who joined Blockchain Capital’s fifth early-stage fund in 2021, are yet to commit to our latest offerings. However, these strategic giants have undeniably played a pivotal role in supporting our mission.
Our recent accomplishments include spearheading a $115 million Series C investment in Tools for Humanity, the developer behind Worldcoin, as well as an influential $40 million Series A investment in RISC Zero, a crypto infrastructure provider. These successful funding rounds further underscore Blockchain Capital’s prowess in identifying and nurturing groundbreaking projects within the crypto space.