San Francisco-based venture capital firm Blockchain Capital today announced that it’s raised $580m for two new crypto investment funds.
The company, founded in 2013, has revealed its new sixth early-stage venture fund and a first opportunity fund, with Visa among those contributing capital. Both Visa and PayPal also added to Blockchain Capital’s fifth $300m fund, which ceased to be in 2021.
Venture investment in crypto start-ups has fallen sharply in the past year. Only $500m was invested in the market in August, the lowest amount recorded in more than two years.
In the second quarter of this year, total venture capital funding for Web3 projects amounted to $1.8bn, marking a notable 76% decrease from the approximately $7.5bn raised during Q2 of 2022.
But Blockchain Capital is steaming ahead regardless. The firm added that volatility in the past two years has “revealed the hazards of short-term thinking, exposing many who misjudged this nascent technology”.
In the announcement, they add: “Over the past 20 months we’ve invested more capital into the next generation of innovators than any other time in our history. The reason is simple: today’s market offers unprecedented opportunities, driven by an influx of highly skilled founders who are developing a diverse range of innovative technologies.
“During this period, we’ve selectively invested into Infrastructure, Gaming, DeFi and Consumer + Social sectors.
“However, our strategy isn’t about sectors; it’s about harnessing blockchain technology to realign incentives, reestablish user trust and reengineer the social contract of our increasingly digital world.
“The end game is to elevate personal empowerment by granting individuals control over their digital and financial lives through innovative blockchain-enabled applications and services. It’s this vision of a democratized and distributed future that guides our passion and investment decisions.”
They conclude: “To the visionaries radically transforming the future of distributed technology, we share your passion and invite you to reach out.”
