- Blockchain Capital targets $700 million as crypto venture funding rebounds
- Firm deploys capital early while fundraising continues amid competitive market
- Crypto VC funding jumps in March despite tougher investor requirements
Venture capital activity in the digital asset sector is gaining renewed attention as firms reposition for changing market conditions and emerging opportunities. According to a Bloomberg report, Blockchain Capital is seeking to raise $700 million across two new funds, signaling a calculated expansion strategy as investor sentiment gradually improves across the crypto market.
Dual fund strategy and early capital deployment shape expansion plans
The firm is raising capital for its second growth-focused fund and its seventh early-stage fund, reflecting a dual investment approach that targets both established and emerging blockchain companies. According to sources familiar with the matter, the fundraising process is already underway and could conclude within five to six months, suggesting steady progress despite ongoing market uncertainties.
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Meanwhile, Blockchain Capital has already started deploying part of the expected capital into selected deals, which highlights a proactive investment strategy in a competitive environment. This early deployment indicates that the firm is positioning itself to secure high-quality opportunities before valuations shift further as market confidence strengthens.
Additionally, the firm manages about $2 billion in fee-bearing assets, which reinforces its position as a major participant in crypto venture investing. Over time, Blockchain Capital has backed several key industry players, including Coinbase, Circle, Polymarket, and Tether, strengthening its track record across multiple market cycles.
Moreover, recent activity shows continued engagement with the sector, as the firm led a $12 million funding round for Paxos Labs last week. This move signals ongoing interest in infrastructure-focused projects that support broader ecosystem development and long-term adoption.
Crypto funding rebound contrasts with tougher fundraising environment
Recent data highlights a rebound in overall crypto venture funding, even as fundraising conditions remain challenging for many firms. According to recent data the total funding reached $2.42 billion in March, marking a strong increase from $683.6 million in February and $1.31 billion in January.
However, many venture capital firms still face difficulty securing commitments from investors despite the rise in funding activity. Thomas Klocanas, managing partner at Strobe Ventures, stated that fundraising conditions may improve alongside broader market recovery, although stricter investment standards are likely to remain in place.
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