Cryptocurrency venture capital firm Blockchain Capital is actively raising $700 million for two new investment funds, signaling continued confidence in the digital asset sector despite a broader slowdown in venture capital activity.
According to a Bloomberg report, the San Francisco-based firm is seeking capital for its seventh early-stage fund and a new growth fund. The fundraising efforts are expected to be completed within the next five to six months. The firm has already begun deploying portions of the capital ahead of the final fund closure, indicating a structured capital planning approach.
Blockchain Capital, led by co-founders and managing partners Bart Stephens and Brad Stephens, manages over $2 billion in fee-bearing assets and boasts a portfolio valued at over $6 billion. The firm has a strong track record of backing major digital asset companies, including Coinbase, Circle, and Tether. Its previous major fundraising effort was in 2023 when it secured $580 million for its sixth early-stage fund and a late-stage fund. The firm's limited partners are predominantly from traditional finance (TradFi) backgrounds, including university endowments, sovereign wealth funds, and U.S. pension plans.
The new funds have a dual focus. The early-stage fund is targeted at experimental blockchain projects with high-risk profiles and long-term potential. The growth fund will concentrate on companies with established traction and measurable revenue streams. This dual approach is designed to provide diversified exposure to a maturing digital asset market.
The fundraising comes at a time when overall crypto funding has declined. Data indicates that total funding dropped significantly in April, recording approximately $466 million, a sharp decline from March's levels, which saw inflows near $3 billion. That March figure was heavily influenced by large transactions such as Core Scientific's $1 billion debt financing arranged through Morgan Stanley. While total funding levels remain below the peaks of the 2021-2022 cycle, where monthly inflows frequently exceeded $4 billion, the average deal size has increased by nearly 50% over the past month.
Despite the broader slowdown, Blockchain Capital has remained active. The firm recently led a $12 million funding round for Paxos Labs, reinforcing its commitment to infrastructure and fintech-linked blockchain services. The ongoing fundraising drive underscores the firm's belief in long-term blockchain adoption trends, even as the market experiences a period of selective capital deployment.
