Rebeca Moen
Apr 23, 2026 06:16
Blockchain Capital targets $700M for two funds focused on early-stage projects and growth investments, signaling institutional confidence in crypto.
Blockchain Capital, one of the oldest venture capital firms in the crypto industry, is raising $700 million across two new funds. According to Bloomberg, the funds will focus on early-stage crypto projects and growth-stage companies, with fundraising expected to wrap up within six months. The firm has reportedly already begun deploying some of the new capital.
The move comes at a time when the broader crypto market is under pressure. Bitcoin remains far below its all-time highs, and total crypto fundraising volume has cooled, dropping to $466 million in April from $3 billion in March, according to Messari. Yet, Blockchain Capitalโs ambitious target underscores sustained institutional confidence in the long-term potential of blockchain technologies. The firm has a track record of backing industry heavyweights like Coinbase, Kraken, and Tether.
Why $700M Matters
The new funds represent Blockchain Capitalโs largest raise to date, increasing its total capital under management to over $2 billion. One fund will be its seventh early-stage vehicle, targeting experimental projects at the cutting edge of blockchain innovation. The second will be a growth fund aimed at scaling mature companies with proven traction.
These funds are expected to fuel innovation in areas such as scalability solutions, privacy protocols, and tokenization of real-world assets. Blockchain Capitalโs previous investments include stablecoin issuer Circle and decentralized finance (DeFi) protocols that have become critical infrastructure in the space.
Context: A Shifting Market
While the crypto market has struggled in 2026, the average deal size for crypto funding has surged by nearly 50% in the past 30 days, Messari data shows. However, this uptick is skewed by a handful of mega-deals, such as Core Scientificโs $1 billion debt financing and Polymarketโs $600 million round. By contrast, the majority of deals remain below $10 million.
This bifurcation highlights a โcapital concentrationโ trend, where funds are increasingly flowing toward established players or projects bridging traditional finance and crypto. Blockchain Capitalโs focus on both early-stage and growth-stage investments positions it to capture opportunities across this spectrum.
Institutional Confidence in Blockchain
Blockchain Capitalโs latest fundraising effort is a clear signal that institutional investors continue to bet on the crypto sectorโs long-term prospects, despite near-term volatility. The firmโs $580 million raise in 2023โbacked by contributors like Visaโset the stage for this larger initiative. Its history includes launching the first-ever security token offering in 2017, showcasing a commitment to pioneering new financial instruments.
As the crypto industry matures, venture capital firms like Blockchain Capital are playing a crucial role in funding the infrastructure and applications that could define the next wave of blockchain adoption. With $700 million in fresh capital, the firm remains a key player to watch.
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