Blockchain Capital raising $700M across two funds

Blockchain Capital is raising $700 million across two new funds and has already begun deploying some of that capital. The firm expects fundraising to conclude in five to six months.

The two vehicles include a second growth fund and the firm’s seventh early-stage fund. People familiar with the process say commitments are being solicited from institutional and strategic limited partners while some capital from the new pools has been put into deals.

Blockchain Capital manages roughly $2 billion in fee-bearing assets. Its portfolio includes Coinbase, Circle, Polymarket and Tether. Last week the firm led a $12 million financing round for Paxos Labs.

The fund pair will allocate capital between later-stage growth opportunities and earlier-stage startups focused on crypto infrastructure and financial primitives. The firm says the structure gives it flexibility to back companies at different stages.

Venture capital flows into crypto have recovered from earlier lows. Monthly VC investment rose to $2.42 billion in March after weaker totals in January and February. At the same time, many crypto-focused firms report tougher fundraising conditions and a higher bar for startup financings.

Thomas Klocanas, managing partner at Strobe Ventures, expects fundraising conditions could improve if broader market trends recover but that the higher bar for startups will likely remain.

Investors have been selective in recent months as they weigh macroeconomic uncertainty, regulatory developments and token market volatility. The new funds will add to Blockchain Capital’s assets under management and support further investments as companies seek financing in a more demanding environment.