Blockchain Capital is raising $700 million across two new funds to invest in early stage and growth stage crypto companies despite a slowdown in the broader market.
Key Takeaways
- Blockchain Capital is targeting $700 million across two crypto focused funds.
- The firm will invest in both early stage startups and growth stage companies.
- Crypto venture funding dropped sharply to $466 million in April from $3 billion in March.
- The move signals strong institutional confidence despite ongoing market volatility.
What Happened?
Blockchain Capital, one of the oldest crypto venture firms, is working to raise $700 million for two new funds, according to Bloomberg. The fundraising is expected to close within the next five to six months, and the firm has already started deploying part of the capital.
The funds include the firm’s seventh early stage fund and its second growth fund, aimed at supporting startups and scaling established crypto businesses.
Blockchain Capital Targets $700 Million for New Investment Funds.
— TheCryptoBasic (@thecryptobasic) April 23, 2026
According to Bloomberg, the firm will split the capital into two funds: one focused on early-stage experimental projects and another targeting more established companies with proven traction.
The fundraising… pic.twitter.com/8tOHbaS0j4
Blockchain Capital Expands Investment Strategy
The new fundraising marks the largest capital raise in the firm’s history, pushing its total assets under management beyond $2 billion. The company already manages a broader portfolio valued at over $6 billion, with backing from institutional investors such as pension funds, sovereign wealth funds, and university endowments.
The two funds will focus on different parts of the crypto ecosystem:
- Early stage fund will back experimental blockchain startups.
- Growth fund will support companies with proven traction.
- Investments are expected across DeFi, stablecoins, and blockchain infrastructure.
Blockchain Capital has a strong track record, having invested in major crypto firms including Coinbase, Kraken, Circle, Tether, Aave, and 1inch. The firm recently also led a $12 million funding round for Paxos Labs, signaling continued deal activity.
Crypto Funding Market Shows Mixed Signals
The fundraising comes during a volatile period for crypto venture capital. Data shows that funding surged earlier in the year before sharply declining:
- January saw about $1.31 billion in funding.
- February dropped to $683.6 million.
- March rebounded to around $2.42 billion to $3 billion.
- April fell significantly to $466 million.
Despite the drop, average deal sizes have increased, driven by a few large transactions such as billion dollar and hundred million dollar raises in the sector. At the same time, most smaller deals remain below $10 million, highlighting a growing capital concentration trend.
According to a JP Morgan report, crypto has become a major driver of fintech investment, accounting for about 45 percent of total funding this year.
Institutional Demand Continues to Grow
The firm’s latest move reflects ongoing institutional interest in crypto assets and infrastructure. Public companies are increasing their exposure to Bitcoin, and crypto based investment products continue to expand.
Recent developments include:
- Launch of new leveraged ETFs tied to altcoins.
- Expansion of crypto treasury strategies by public firms.
- Entry of new players like Metaplanet, which plans to invest in Bitcoin infrastructure.
Blockchain Capital’s previous raise of $580 million in 2023 laid the foundation for this larger push, showing a consistent commitment to the sector.
CoinLaw’s Takeaway
In my experience, when venture firms raise bigger funds during a downturn, it usually means they see strong long term value that the market is currently underestimating. I found this move by Blockchain Capital especially telling because it is not just raising money, it is actively deploying it.
This signals that smart money is positioning early for the next crypto cycle. While retail sentiment may still be cautious, institutional players appear to be preparing for long term growth in blockchain adoption.
