Blockchain Capital Moves to Raise $700 Million as Crypto VC Activity Rebounds

Blockchain Capital is seeking to raise $700 million across two new investment vehicles, signaling renewed momentum in crypto venture funding despite ongoing challenges in capital formation.

According to a Bloomberg report, the firm is raising funds simultaneously for its second growth-stage fund and its seventh early-stage fund, reflecting a dual strategy aimed at capturing opportunities across the digital asset lifecycle.

Sources familiar with the matter indicate that capital deployment has already begun, with the fundraising process expected to conclude within five to six months.

Strategic Positioning Across Market Cycles

With approximately $2 billion in fee-bearing assets under management, Blockchain Capital has established itself as one of the longest-standing venture firms in the crypto sector.

Its portfolio includes major industry players such as Coinbase, Circle, Polymarket, and Tether, underscoring its role in backing foundational infrastructure across the ecosystem.

The firm has remained active in recent months, most recently leading a $12 million funding round for Paxos Labs, indicating continued deal flow even amid shifting market conditions.

Funding Rebounds, Challenges Persist

Recent data suggests a rebound in crypto venture activity. Funding reached $2.42 billion in March, up sharply from $683.6 million in February and $1.31 billion in January, according to industry data.

However, despite the uptick, fundraising conditions remain uneven. Venture firms are facing a more selective capital environment, with investors applying stricter criteria to both fund managers and startups.

Market participants note that while broader recovery in crypto markets could improve fundraising sentiment, the higher bar for capital allocation is likely to persist.

A More Disciplined Venture Cycle

The current environment reflects a shift from the aggressive funding cycles of previous years toward a more disciplined investment approach.

For firms like Blockchain Capital, the ability to raise significant capital amid these conditions signals both investor confidence and a recalibration of venture strategies—balancing long-term growth bets with near-term execution.

As crypto markets stabilize, the trajectory of venture funding will likely depend on a combination of macro conditions, regulatory clarity, and the performance of existing portfolio companies.