Venture capital firm Blockchain Capital is in the process of raising $700 million for two new funds, signaling a significant inflow of institutional capital into the crypto startup ecosystem.
The firm is simultaneously raising for its seventh early-stage fund and its second growth fund, according to a person familiar with the matter. The fundraising is expected to be completed within five to six months, and the firm has reportedly begun to deploy some of the new capital.
The two new vehicles target both nascent and developing companies within the blockchain sector. The move to raise a dual-purpose pool of capital—split between high-risk seed ventures and more established growth-stage companies—shows a maturing strategy for one of the industry's oldest investors.
This large-scale fundraising by a major VC indicates strong institutional confidence and a significant inflow of 'dry powder' capital into the crypto and Web3 startup ecosystem. The capital injection comes as the crypto fundraising landscape has evolved significantly from the unregulated Initial Coin Offering (ICO) boom of 2017. Today, venture capital runs in parallel with more structured public fundraising models like Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs), which operate under clearer regulatory perimeters like the European Union's MiCA regulation. This hybrid approach, combining VC backing with community-led launches, has become a standard for serious projects, providing both the strategic guidance of venture firms and the network effects of a public sale. The increasing institutional interest is also reflected in new regulated products, such as the recently launched GSR Crypto Core3 ETF, which provides investors with exposure to major tokens through traditional brokerage accounts. This influx of dedicated capital from established players like Blockchain Capital could fuel innovation, drive M&A activity, and potentially increase valuations for early-stage and growth-stage projects in the coming months.
This article is for informational purposes only and does not constitute investment advice.
