Crypto VC Blockchain Capital scores $580 million for two new funds

Blockchain Capital, the San Francisco-based venture capital firm, raised $580 million for two new crypto investment funds.

Founded in 2013, the company today announced its sixth early-stage venture fund and a first opportunity fund, having raised $580 million in total. Payments giant Visa was among those that contributed capital. Both Visa and PayPal also invested in Blockchain Capital’s fifth $300 million fund, which closed in 2021.

Venture investment in crypto startups has fallen sharply in the past year. Less than $500 million was invested in the space in August — the lowest level recorded in more than two years.  

Yet, Blockchain Capital has remained active. It led several noteworthy later-stage rounds in recent months, including a $115 million raise by Tools For Humanity — the developer of the controversial Worldcoin project — and a $40 million raise by RISC Zero.

In particular, the company has homed in on investments in crypto startups focused on infrastructure, gaming, DeFi, consumer and social, according to today’s announcement.

“Over the past 20 months, we’ve invested more capital into the next generation of innovators than any other time in our history. The reason is simple: today’s market offers unprecedented opportunities, driven by an influx of highly skilled founders who are developing a diverse range of innovative technologies,” Blockchain Capital said in its announcement.

The firm added that volatility in the sector over the past year or two has “revealed the hazards of short-term thinking, exposing many who misjudged this nascent technology.”