Heavily Oversubscribed, Blockchain Capital Closes $300 Million Raise for its 5th Venture Capital Fund Led by Paypal and Visa

Blockchain Capital had resounding success in its funding drive as it reached its hard cap of $300 million.

By
Chung Yee
on
June 23, 2021
Category:
Blockchain News

Fifth Venture Capital Fund

Blockchain Capital, a venture capital firm that was founded in 2013 has successfully raised $300 million for its 5th venture capital fund, meeting its hard cap. The funding round was oversubscribed. Blockchain Capital has had resounding successes in the past with projects that were funded through them such as Coinbase, Kraken, Anchorage, Opensea, Aave, Nexus Mutual and UMA.

The last venture capital fund, which was called ‘Fund V’ will be managed through Blockchain Capital V, focussing on projects that will build value towards the crypto ecosystem such as blockchain infrastructure, decentralized finance (DeFI), Non Fungible Tokens (NFTs) and emerging applications of blockchain technology. 

The recent round of fundraising saw keen interest from participation of strategic investors, pension funds, major university endowments and family offices around the world. The recent fund raising saw participation from industry giants such as Visa and Paypal which is a significant process. This bodes well for the entire ecosystem as investors around the world are starting to see opportunities in an emerging market that will be sustainable in the future. 


Finding Value in the Blockchain Ecosystem 


Source 
P. Bart Stephens, co-founder and managing partner of Blockchain Capital said,  "We are incredibly honored to welcome a world class group of investors into Fund V who appreciate the value of a firm dedicated to a single industry. As founders ourselves, we know how hard it is to build companies, protocols and, indeed, a whole new industry,"

The approach taken by Blockchain Capital is rather forward looking. 

In a quote taken from their website, it says, ‘Blockchain technology is not the correct solution for every application but, when it is, we believe it has transformational power.’

The recognition that Blockchain technology is pervasive and transformational. It cuts across geographical limitations or asset types and it has a host of use cases. With the success of Blockchain Capital, there will be other funds that seek to grant access for investor’s participation through proper due diligence exercises that will be carried out by an experienced team within the venture capital firm. 

Blockchain Capital has its own research team to gain better insight as the ecosystem expands and publishes such results | Source

Projects that have value will be seeking investment from Blockchain Capital for multiple reasons. It is more than merely seeking funds. The venture capital firm allows for leverage on its industry-leading network, research capability and industry contacts. 

Institution Adoption is Here

Many are focussed on institution participation from the perspective of crypto asset ownership. This is not the case as the entire ecosystem continues to grow. With the many use cases, there is an income generating model that is attractive to investors. Participation can take place by having a stake in projects that are promising. Projects can continue to build on its infrastructure and innovate the space with better and more efficient products and services. 

Jose Fernandez da Ponte, vice president, general manager blockchain, crypto and digital currencies, PayPal said, "Investing in Blockchain Capital's new fund allows us to engage with the entrepreneurs driving the future of the decentralized economy and the new wave of financial services." 


Building Launchpads for the Future

The value of venture capital firms such as Blockchain Capital is that it provides a good base for projects to build its network and find proper funding support without the rigours of traditional financing that may have less understanding of the blockchain industry or its ecosystem. The growing interest by investors is a good barometer to evaluate perception and viability in this relatively new industry.

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

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