Blockchain Capital, a venture capital fund for cryptocurrency builders, has announced the closing of two funds that together total $580 million. The fundraiser, the largest one of the company in its ten years of existence, reveals the interest of investors in the blockchain sector as a source of business opportunities.
Blockchain Capital Raises $580 Million for Two New Funds
Blockchain Capital, a crypto-focused venture capital powerhouse, announced the launch of two new funds directed at investing in cryptocurrency startups. Together, these funds total $580 million, proving investors are still interested in the blockchain sector.
The fundraiser, which is the biggest one in the firm’s history, reflects the trust in the “long-term perspective and experience” of the company.
In a press release, Spencer Bogart, general partner at Blockchain Capital, explained the significance of measuring the times and knowing how to navigate difficulties in the industry, stating that “instead of recognizing the quieter, fundamental indicators of long-term value creation, investors often misjudge innovation’s tempo and play ahead of the beat.”
The two venture funds, the group’s sixth early-stage fund, and its first “opportunity fund,” will allocate two-thirds and one-third of the $580 million for their investments, respectively. These will focus on six sectors: decentralized finance, centralized finance, centralized infrastructure, decentralized infrastructure, gaming, and consumer/social.
Optimistic Even in Bear Market
The firm remains optimistic about the evolution of the market and how blockchain and crypto might keep growing even with the current challenges. Blockchain Capital stated that its strategy was “about harnessing blockchain technology to realign incentives, reestablish user trust, and reengineer the social contract of our increasingly digital world.”
The last fund launched by the company dates back to 2021 when Blockchain Capital raised $300 million from partners like Paypal and Visa for its fifth venture capital fund. In this new phase, the company will continue to focus on blockchain and crypto opportunities, disregarding any expansion to other fields, including artificial intelligence (AI).
About this, Bogart stressed:
There’s always been temptation across VCs to experiment in new sectors, but we have no intent to expand and become an AI fund or hedge fund and trade tokens.
The firm hopes to allocate the raised capital during the next three years. This timeline can be accelerated to two years or slowed down even to five years, depending on the opportunities available, according to Bogart.
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