Bear Market? Blockchain Capital Raises $580M for Two New Crypto Funds

Venture Capital firm Blockchain Capital announced on Monday that it has raised $580 million for two new crypto funds. The funds, split into two phases, are among the highest crypto funds raised this year amidst the bear market.

According to the venture capital giant, it would allocate $380 million to an “early stage” fund, notably the eighth time it has raised such funds. Blockchain Capital will use this fund to invest in Seria A or seed rounds, the venture capital firm stated.

The other $200 million is the “opportunity fund,” which was the first of its kind by the firm. The funds would cater to startups’ funding needs in their latter stages.

Bear Market? What Bear Market?

Amidst the prolonged bear market, which has seen Bitcoin fall more than 60% from its all-time high, Blockchain Capital has remained resolute in raising funds and funding crypto startups. The venture capital firm stated that the $580 million realized was the highest amount it has ever raised since its inception in 2013.

Speaking about the remarkable feat, the general partner at Blockchain Capital, Spencer Bogart, said, “We are especially grateful to have achieved the largest fundraise in our ten year history during this bear market, as it reflects our investors’ trust in our long-term perspective and experience.”

The firm told Fortune that it started the fundraising rounds in 2021 before the market capitulation and raised the majority of the funds from large family offices, pensions, endowments, foundations, and other investment partners. The realized funds suggest that investors still maintain an appetite for cryptocurrency exposure despite the recent downturns.

Setting the Trends

“Over the past 20 months, we’ve invested more capital into the next generation of innovators than any other time in our history. The reason is simple: today’s market offers unprecedented opportunities, driven by an influx of skilled founders who are developing a diverse range of innovative technologies,” Bogart added.

Blockchain Capital stated that it has actively invested in the infrastructure, gaming, DeFi, and Customer + Social sectors. The venture capital firm led a $115 million Series C for Worldcoin developer Tools for Humanity.