Blockchain Capital Raises $700 Million for Two New Crypto Funds, Bloomberg Says

Blockchain Capital, described as a crypto-focused venture capital firm and a Coinbase backer, is raising $700 million across two new funds, according to Bloomberg as cited by CoinDesk and The Block.

“Coinbase backer Blockchain Capital hunts $700 million for new funds The San Francisco-based firm is raising for its seventh early-stage fund and second growth fund, which are expected to be completed in the next five to six months”

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CoinDesk says the firm is raising for its seventh early-stage fund and second growth fund, with the rounds expected to be completed in the next five to six months.

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The Block similarly reports that Blockchain Capital is seeking capital for its second growth fund and its seventh early-stage fund, and that the fundraising process is expected to conclude in five to six months.

Multiple outlets also say the firm has already begun deploying some of the new capital while the fundraising is still underway.

CoinDesk adds that Blockchain Capital is run by two co-founders and managing partners, Bart Stephens and Brad Stephens, and that it previously raised around $1 billion for crypto investment.

CoinDesk further states that the firm manages $2 billion in fee-bearing assets and has a total portfolio worth more than $6 billion, citing Bloomberg.

Decrypt and The Block both tie the fundraising to Bloomberg’s reporting and a source familiar with the matter, with Decrypt adding that Blockchain Capital has already deployed some of the new capital.

Across the coverage, the two-fund structure is framed as a split between early-stage and growth-stage investing.

CoinDesk says the firm is raising for its seventh early-stage fund and second growth fund, and it characterizes the effort as a dual fundraising initiative.

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The Block reports that Blockchain Capital is simultaneously seeking capital for its second growth fund and its seventh early-stage fund, and it says the firm has remained active in recent months.

Decrypt adds that the fundraising effort is tied to Blockchain Capital’s existing portfolio of “over $2 billion in assets under management,” and it describes the firm’s continued investment activity by noting it led a $12 million funding round for Paxos Labs last week.

Intellectia AI likewise describes a dual-fund strategy, saying Blockchain Capital is raising $700 million to establish dual funds targeting early-stage and growth-stage investments.

TradingView’s version of the Bloomberg report describes the seventh early-stage fund as aimed at “experimental or early-stage projects” and the second growth fund as covering more mature companies that already have some traction.

Crypto.news also describes the seventh early-stage fund as focused on experimental and early-phase projects, alongside a separate growth fund targeting companies that already have market traction.

In addition to the fund structure, multiple outlets emphasize that Blockchain Capital has already started putting some of the new capital to work, even though official closing is still months away.

The fundraising effort is repeatedly placed in the context of Blockchain Capital’s prior raises and its existing crypto portfolio.

“Summary - Cryptocurrency venture capital firm Blockchain Capital is seeking to raise two new funds with a combined size of $700 million”

bloomingbit

CoinDesk says the firm has raised around $1 billion for crypto investment, with digital asset giants such as Coinbase, Circle and Tether in its portfolio.

It also says the company’s last major raise came in 2023 when it drew $580 million for its sixth early-stage fund and one late-stage fund.

Decrypt similarly describes Blockchain Capital’s VC portfolio as including crypto exchange Coinbase, DeFi platforms 1inch and Aave, and stablecoin issuers Circle and Tether.

The Block adds that Blockchain Capital has backed major crypto companies including Coinbase, Circle, Polymarket and Tether, and it says the firm manages about $2 billion in fee-bearing assets.

Bloomingbit says Blockchain Capital previously raised a $1 billion crypto-focused fund and that it used that money to invest in Coinbase, Kraken and Tether.

TradingView says the firm previously raised a total of $1 billion for crypto investments, and it lists Kraken and Coinbase as investments along with stablecoin issuers Circle and Tether.

CoinDesk also notes that Blockchain Capital’s limited partners largely come from a traditional financial background, including university endowments, sovereign wealth funds, U.S. pension plans and the like.

Several outlets connect Blockchain Capital’s fundraising to broader crypto venture capital conditions, using figures about monthly funding and deal sizes.

Decrypt says crypto VC funding climbed to $2.42 billion in March from $683.6 million in February and $1.31 billion in January, before dropping to about $466 million in April, citing industry data.

crypto.news

The Block also reports that crypto VC funding climbed to $2.42 billion in March, from $683.6 million in February and $1.31 billion in January, and it says many crypto VCs are finding it harder to raise capital.

Crypto.news and TradingView both cite Messari data to describe how average deal size has increased even as total funding falls, with crypto.news saying average crypto fundraising deal size has climbed nearly 50% over the past 30 days and TradingView describing the average crypto funding deal size as up nearly 50% over the last 30 days.

TradingView adds that crypto projects have raised only $466 million so far in April, down from $3 billion in March, and it names Core Scientific’s $1 billion debt financing arranged through Morgan Stanley as the largest deal of the last two months.

TradingView also quotes Messari analysts saying, “Capital concentration is heavily skewed by debt and late-stage mega-rounds, masking a more modest median deal size,” and it adds that “the majority of activity remains in the sub-$10 million range.”

Crypto.news similarly says total capital raised has dropped sharply month over month, and it repeats that April funding is about $466 million.

Intellectia AI adds a different angle by claiming “average transaction sizes have surged by approximately 50%” despite an overall decline in funding, and it says Blockchain Capital has begun deploying capital before completing formal fundraising.

Beyond the fundraising mechanics, Decrypt and The Block describe a wider institutional shift in crypto that frames why a large VC raise is happening now.

“Crypto venture firm Blockchain Capital has moved to raise $700 million across two new funds as investment appetite shows signs of concentration despite a slowdown in overall deal flow”

crypto.news

Decrypt says the fundraising comes amid volatile conditions for crypto venture capital and adds that a recent JP Morgan report described crypto as “reemerged as a dominant driver of fintech funding,” accounting for some $3.5 billion—45% of all fintech investment—in the year to date.

Decrypt

Decrypt also says crypto treasury firms are branching out into venture capital, citing Tokyo-listed Metaplanet’s venture arm with plans to deploy around $25 million into companies building Bitcoin financial infrastructure.

The same Decrypt account points to institutional crypto adoption by saying “Public companies now hold billions in Bitcoin portfolios,” and it says crypto investment products continue expanding, including that “Three altcoins received leveraged ETFs this month.”

It also mentions a high-profile security incident, saying “a venture firm founder offering a bounty to recover $42 million in stolen crypto.”

The Block’s account focuses more narrowly on fundraising conditions, quoting Thomas Klocanas, managing partner at Strobe Ventures, saying fundraising conditions could improve alongside broader market recovery, while “the higher bar for startups is likely to persist.”

CoinDesk adds a different institutional angle by noting that “Six Coinbase senior marketing executives, including the exchange's former chief marketing officer, have jumped to OpenAI in the past year and a half,” and it says OpenAI has also lured senior policy, product design and data science talent from Coinbase.

While these details are not directly tied to the fund’s closing date, they collectively portray a sector where institutional participation and capital vehicles are expanding alongside VC fundraising.