All Access

Fintech Deals

Standard

Fintech Deals Alerts

Alert

Fintech Deals Thought Bubble

Thought Bubble

mustard

BFD Expert Voices - Private Credit

BFD Expert Voices

Crypto-focused VC firm Blockchain Capital has closed two new funds for a total of $580 million.

Why it matters: Despite a global slowdown in crypto dealmaking, LPs continue to back firms focused on the sector.

Details: The two new vehicles, first reported by TechCrunch, are Blockchain Capital's sixth early-stage fund and its first opportunity fund.

Roughly two-thirds of the $580 million will be allocated to backing early-stage startups, and one-third will go toward late-stage vehicles.

Context: Due to the collapse of firms like FTX — and increased regulatory scrutiny in the sector — VC funding for crypto startups has fallen dramatically in recent quarters.

According to data from Architect Partners, crypto investment in the second quarter was down 71% from the same period in 2022.

That was also its lowest level since the fourth quarter of 2020.

State of play: Despite that, VC firms in the sector continue to raise new funds.

Last week, an SEC filing disclosed that Electric Capital is raising $300 million for its third investment vehicle.

In July, Polychain Capital raised $200 million in the first close of its fourth fund, and CoinFund raised $158 million for its fourth fund.

Race Capital, an early-stage fintech investor that backs crypto startups, raised $150 million for its second fund in late June.

Earlier in the year, former Binance former head of M&A Bill Qian told Lucinda he was raising $100 million to invest in crypto startups.

What we're watching: Just how long it might take for crypto investment to rebound, considering the amount of dry powder available across these new funds.

Of note: Blockchain Capital last raised $300 million for its fifth fund in mid-2021, just before the onset of this latest crypto winter.

Its portfolio includes investments in companies like Coinbase, Circle, Ripple, Anchorage Digital, OpenSea and Aave.

Crypto VC firm Blockchain Capital closed $580M for two new funds

LPs continue to back crypto-focused VC firms.

Illustration of a crypto block with an image of a one hundred dollar bill on one side.

Fintech

Crypto-focused VC firm Blockchain Capital has closed two new funds for a total of $580 million.Why it matters: Despite a global slowdown in crypto dealmaking, LPs continue to back firms focused on the sector.

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

c-suite

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

charlotte

boulder

detroit

kansas-city

columbus

austin

dallas

atlanta

washington-dc

nw-arkansas

chicago

indianapolis

nashville

richmond

colorado-springs

houston

san-francisco

seattle

boston

des-moines

salt-lake-city

philadelphia

denver

phoenix

new-orleans

miami

twin-cities

raleigh

san-antonio

portland

san-diego

tampa-bay

cleveland

huntsville

pittsburgh

axios-local

axios-pro

axios-live

the-axios-show

Crypto VC firm Blockchain Capital closed $580M for two new funds

What to read next