Blockchain Capital Closes Two New Funds, Raising $580 Million
Blockchain Capital, a venture capital company founded by Bart Stephens and Brad Stephens in 2013, has successfully closed two new funds, raising a total of $580 million. The funds consist of a sixth early-stage fund and the firm’s first “opportunity fund.”
Sixth Early-Stage Fund: Investing in Newer Companies and Protocols
The sixth early-stage fund, valued at $380 million, will primarily focus on investing in newer companies and protocols during pre-seed and Series A funding rounds. According to Spencer Bogart, the firm’s general partner, this aligns with their core strategy and allows them to continue growing.
Opportunity Fund: Targeting Late-Stage Investments
The opportunity fund, worth $200 million, will target late-stage investments starting from Series B and onward. This reflects Blockchain Capital’s intention to support early-stage projects while also capitalizing on promising opportunities in later stages of development.
Sector Focus: Decentralized Finance, Gaming, and More
The funds will be deployed across six sectors: decentralized finance, centralized finance, centralized infrastructure, decentralized infrastructure, gaming, and consumer/social. By focusing on these sectors, Blockchain Capital aims to remain at the forefront of innovation within the blockchain ecosystem.
Investor Base: Strategic Limited Partners and Committed Capital
Blockchain Capital’s investor base consists of strategic limited partners (LPs) such as Visa and PayPal, as well as long-term committed capital from entities like university endowments, family offices, and sovereign wealth funds. The strategic partners value the firm’s expertise in identifying potential collaborations.
Utilizing the Opportunity Fund for Missed Projects
The opportunity fund will be used to invest in projects that Blockchain Capital may have missed during their early funding rounds. This allows them to participate in the growth and development of these projects, even if they were not involved from the outset.
Leading Role in Funding Rounds
Blockchain Capital now takes a leading role in “most” of the funding rounds it participates in, committing over 50% of the funding and influencing pricing, term sheets, and securing board seats. This demonstrates their strong commitment to supporting and shaping the projects they invest in.
Long-Term Vision for Blockchain-Based Startups
Looking ahead, Blockchain Capital intends to continue investing in blockchain-based startups with a long-term vision. The firm remains focused on its niche within the blockchain industry and has no plans to diversify into other sectors or investment strategies.
Hot Take: Blockchain Capital Raises $580 Million for New Crypto Funds
Blockchain Capital has successfully raised $580 million for two new funds, reaffirming its position as a leading venture capital company in the blockchain industry. The funds consist of an early-stage fund and an opportunity fund, allowing the firm to support both emerging companies and promising late-stage projects. By focusing on key sectors within the blockchain ecosystem, Blockchain Capital aims to drive innovation forward. With strategic partners like Visa and PayPal, the firm has established strong collaborations that go beyond financial investments. This latest fundraising success enables Blockchain Capital to continue playing a significant role in funding rounds while influencing project development. Moving forward, the company remains committed to its core focus on blockchain-based startups, ensuring a long-term vision for growth and success.
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