Blockchain Capital Raises $700M for 7th Early-Stage and 2nd Growth Fund

Blockchain Capital is running simultaneous fundraises for two new funds totaling $700 million, Bloomberg reported citing a person familiar with the matter. The first is the firm's seventh early-stage venture fund; the second is its second growth fund. Some capital is already being deployed, with full close expected within five to six months.

Two Fund Types at Once: Why the Structure Matters

The early-stage fund targets companies at seed and Series A - teams with a prototype or early traction but without confirmed scale. The growth fund, first launched several years ago, focuses on later-stage rounds where companies already have a working product and are pushing for expansion.

Running both simultaneously lets the firm support portfolio companies across all major milestones. A startup that enters the portfolio at seed can receive follow-on capital from the same general partner through the growth fund. That continuity shortens the gap between first check and exit preparation via IPO or M&A.

$2B AUM and the First Deal of the New Cycle

Blockchain Capital's existing portfolio exceeds $2 billion in assets under management. Last week the firm already signaled deployment from the new capital: it led a $12 million funding round in Paxos Labs, the issuer of the USDP stablecoin and an infrastructure platform for tokenized assets. That deal shows the new funds are targeting core financial infrastructure, not consumer speculation.

The timing is intentional. Venture funds with long time horizons often raise and deploy in cooling markets, where valuations are lower and competition for deals is lighter. Six months to close $700 million is an aggressive but credible timeline for a firm with Blockchain Capital's track record.

Portfolio: From Coinbase to Tether

The firm's public portfolio covers major market segments. On the centralized exchange side: Coinbase, the company behind one of crypto's most prominent public listings. In DeFi: USDC issuer Circle, and protocols 1inch and Aave. In stablecoins: USDT giant Tether. Together, these holdings represent a broad bet across the full functional stack of the crypto market.

This portfolio is not a concentrated bet on one segment. Blockchain Capital intentionally spreads exposure across exchanges, liquidity protocols, and infrastructure providers. The first deal in Paxos Labs suggests the seventh and second funds will continue that diversification approach.

Crypto VC After a Tough Quarter

The $700 million raise comes after the market absorbed one of its most difficult quarters in years. Bitcoin fell 23% in Q1 2026, and CoinGecko data showed centralized exchange trading volumes down 39% over the same period. In that environment, raising $700 million is not just a financial decision but a statement about where the fund managers see recovery heading.

For comparison: in 2021-2022, crypto VCs raised record sums - a16z closed a $4.5 billion fund and Paradigm raised $2.5 billion. Activity dropped sharply after the bear market. Blockchain Capital's $700 million in April 2026 may mark the first clear sign that large crypto funds again see the right entry window for raising capital.

Summary

Blockchain Capital is raising $700 million across two funds, covering the full investment cycle from early startups to companies near scaling. An existing $2 billion-plus AUM and a portfolio including Coinbase, Aave, and Circle give the firm the credibility to close this round in tough market conditions. The first deal in Paxos Labs signals the focus: core financial infrastructure over speculative token plays.

If the round closes on schedule, Blockchain Capital will have fresh dry powder for active deployment in Q4 2026. For the sector, a move of this size from one of crypto's oldest VCs reads as a vote of institutional confidence in the medium-term recovery.