Blockchain Capital eyes $700M raise across early and growth crypto funds

Crypto venture firm Blockchain Capital has moved to raise $700 million across two new funds as investment appetite shows signs of concentration despite a slowdown in overall deal flow.

Bloomberg, citing a person familiar with the matter, reported that the firm is currently securing capital for its seventh early-stage fund focused on experimental and early-phase projects, alongside a separate growth fund targeting companies that already have market traction.

Managing a portfolio exceeding $2 billion in assets, the firm has already started putting some of this new capital to work, even though the official closing of the rounds remains six months away. Early backing for major industry pillars like the Kraken and Coinbase exchanges, alongside stablecoin leaders Circle and Tether, has solidified the firm’s reputation as a cornerstone of crypto venture capital.

Earlier fundraising rounds brought in a combined $1 billion, with the latest raise expected to close within the next six months. Capital deployment has already begun in select cases, indicating early conviction on pipeline opportunities.

Deal sizes rise even as total funding slows

Across the market, deal activity has taken a mixed turn. Data from Messari shows the average crypto fundraising deal size has climbed nearly 50% over the past 30 days, even as total capital raised has dropped sharply month over month.

Growing deal sizes arrived in spite of a cooling market where total monthly inflows dropped to $466 million in April, a steep fall from the $3 billion recorded during March. A significant portion of that capital came from large transactions, led by Core Scientific’s $1 billion debt financing arranged through Morgan Stanley.

However, fundraising numbers still sit well below what has been recorded during earlier cycles. Monthly capital inflows have cooled significantly from peaks in late 2021 and mid 2022, when funding consistently crossed $4 billion.

Nevertheless, certain segments continue to attract interest. Institutional infrastructure and fintech-linked crypto services are still drawing larger checks, particularly platforms that connect traditional finance systems with digital asset markets. 

Examples include financial platform Slash, which managed to raise $100 million at a $1.4 billion valuation earlier this month.