Crypto Vc Firms Raise $350M Amid Market Caution

7/19/2023 2:00:23 PM

(MENAFN- CoinXposure) Crypto venture capital firms Polychain Capital and Coinfund have raised over $350 million, with respective raises of $200 million for a new investment fund and $152 million for a seed fund.

According to sources familiar with the matter, Polychain raised $200 million in the“first close” of its fourth investment fund, as reported by Forbes on July 18.

Polychain has now signed agreements with investors and can begin issuing funding to startups and initiatives as a result of the closing.

Despite the substantial increase, Polychain plans to raise a total of $400 million for the new fund. In addition, three members of polychain's research staff were let go due to the company's new investment priorities.

Pitchbook data indicates that Polychain currently manages three funds with approximately $2.6 billion in assets under management.

Bloomberg reported on July 18 that Coinfund raised $152 million for its fourth seed fund, despite the consistent decline of venture capital funding for crypto projects over the past year. Coinfund's CEO, Jake Brukhman, stated that the company had aimed to raise $125 million but was able to raise an additional $27 million due to the industry's renewed interest.

According to data from business analytics firm Crunchbase, the total amount of venture capital funding for crypto and Web3 enterprises has dropped by 76% since this time last year.

See also gemini ceo threatens legal action over unresolved funds 2 weeks ago

The total sum of venture funding and number of deals for crypto startups in the last two years. Source: Crunchbase

Following the failures of Do Kwon's Terra Money ecosystem, Sam Bankman-Fried's FTX, and several other high-profile initiatives over the past two years, investors have reportedly become wary of the cryptocurrency sector.

This has led to a retreat into more traditional market sectors, and many venture capitalists have become wary of new investments across the board, with artificial intelligence being the notable exception.

As of January 1, the ai industry had received over $12 billion in venture capital as investors rushed to capitalize on the emerging sector.

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