Blockchain Capital has successfully secured $580 million for two investment funds. This marks the largest fundraising milestone in the company’s ten-year history.
Diverse Investment Avenues
The first fund, a traditional early-stage venture fund, builds on Blockchain Capital’s history of successful ventures. The second fund, dubbed the “Opportunity Fund,” is a novel addition. It is a new instrument designed to meet trends in blockchain investments, with a focus on later-stage projects.
This fundraising accomplishment is particularly significant given the ongoing bear market conditions. Despite declines in asset prices, Blockchain Capital’s leadership remains steadfast in their belief in blockchain’s innovation and resilience.
The leadership emphasizes confidence in open source innovation, neutrality, and censorship resistance.
Correcting Valuation Distortions
Blockchain Capital Founder Bart Stephens elaborates on the Opportunity Fund’s purpose. It was crafted to address valuation distortions witnessed during the bullish markets of 2020 and 2021– an effect felt especially in later-stage projects. This fund seeks to provide targeted capital to late-stage crypto companies, particularly those well-versed in Web3 technology.
Crypto Financing Landscape Shifts
The crypto private financing landscape has experienced a 75% decline in the first half of 2023 compared to the previous year. Although the number of financing rounds remains stable, total capital, especially for later-stage rounds, has decreased. Blockchain Capital’s investors are diverse. They include university endowments, private foundations, financial institutions, sovereign wealth funds, and US pension plans like the Teacher Retirement System of Texas.
Strategic Investors’ Watchful Eye
Strategic investors Visa and PayPal are closely monitoring developments but have not yet confirmed their participation in Blockchain Capital’s latest funds.
Over the past 20 months, Blockchain Capital has made substantial investments in various sectors. These include infrastructure, gaming, DeFi, consumer, and social sectors.
All investments retain a focus on scalability. They have supported zero-knowledge proof technology pioneers Matter Labs and Risc Zero. Matter Labs’ zkSync Era, an EVM-compatible zk proof-based rollup, exemplifies their commitment to integrity and privacy.
Open-Source Initiatives
Risc Zero has recently made zk infrastructure more accessible to developers by open-sourcing its “Type 0” zkEVM, Zeth. Blockchain Capital also explores opportunities in consumer-focused segments, recognizing blockchains’ potential to democratize digital ownership and monetize online activities.
The company’s investments extend beyond technology into Web3 social platforms and gaming. Their research covers privacy, loyalty programs, security, and the intersection of artificial intelligence and crypto, maintaining an open-minded approach toward the viability of these endeavors.
