Blockchain Capital, a venture capital company founded by Bart Stephens and Brad Stephens in 2013, has raised a total of $580 million through the closure of two new funds. The company’s general partner, Spencer Bogart, confirmed the news, stating that the funds include a sixth early-stage fund and the firm’s first “opportunity fund.”
The funds consist of $380 million for the early-stage fund and $200 million for the opportunity fund. The early-stage fund will mainly focus on investing in newer companies and protocols during pre-seed and Series A funding rounds. Bogart described this as their “bread and butter” and explained that they aimed to stay aligned with their limited partners (LPs) while still growing.
On the other hand, the opportunity fund will target late-stage investments starting from Series B and onward. This reflects the firm’s intention to continue supporting early-stage projects while capitalizing on promising opportunities in later stages of development.
The funds will be allocated across six sectors: decentralized finance, centralized finance, centralized infrastructure, decentralized infrastructure, gaming, and consumer/social. This strategic allocation positions Blockchain Capital at the forefront of innovation within the blockchain ecosystem.
The investor base of Blockchain Capital consists of two categories: strategic LPs such as Visa and PayPal, and long-term committed capital from entities like university endowments, family offices, and sovereign wealth funds. Bogart explained that the strategic partners have a more active role and look to Blockchain Capital for guidance on potential collaborations.
The opportunity fund will be utilized to invest in projects that the firm may have missed during their early funding rounds. This allows Blockchain Capital to participate in the growth and development of these projects, even if they were not initially involved.
Bogart highlighted that Blockchain Capital now takes a leading role in “most” of the funding rounds they participate in, committing over 50% of the funding and influencing pricing, term sheets, and securing board seats.
Looking ahead, Blockchain Capital aims to continue investing in blockchain-based startups with a long-term vision. The firm remains committed to its niche within the blockchain industry and has no plans to diversify into other sectors or investment strategies.
The article included a figure showing the retracement of the total crypto market cap to the $1.045 trillion line on the daily chart. The featured image was sourced from iStock, and the chart was sourced from TradingView.com.
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