Visa and PayPal have invested in Blockchain Capital’s newest $300 million venture capital fund.
Blockchain Capital will invest in companies that specialize in blockchain infrastructure, DeFi, NFTs, and new blockchain applications.
Since its founding in 2013, Blockchain Capital has invested in 110 businesses, protocols, and crypto assets throughout the ecosystem, amassing a portfolio that includes well-known brands like Coinbase, Kraken, Anchorage, and OpenSea.
Visa and PayPal will join Blockchain Capital’s strategic partnership program in addition to investing in the fund. In recent months, both payment behemoths have made significant efforts to embrace digital currencies.
As partners in Blockchain Capital’s sixth venture fund, a $300 million war chest unveiled Tuesday, PayPal and Visa are pursuing bets throughout the crypto sector.
Companies that are becoming more crypto-savvy are relative newbies to crypto VC. While both have made direct investments in a few crypto companies, becoming limited partners (LPs) implies they will have an outside manager make larger equity investments on their behalf.
“PayPal is committed to fostering an ecosystem of companies making digital currencies more accessible, useful and secure. 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.”
What is Blockchain Capital?
Blockchain Capital (previously Crypto Currency Partners) is a venture capital firm that focuses on blockchain technology. Bart Stephens, Bradford Stephens, and Brock Pierce, chairman of the Bitcoin Foundation, established the business in October 2013.
With a portfolio of more than 70 projects funded and $275 million in assets under management, Blockchain Capital is one of the most active and oldest venture capitalists in blockchain technology.
The BCAP, which was sold via a security token offering in April 2017, was the world’s first tokenized investment fund and the blockchain industry’s first security token. This initial coin offering (ICO) was conducted by Blockchain Capital as an experiment, and it helped the business generate $10 million in only six hours.
With the assistance of its initial coin offering (ICO), Blockchain Capital raised $150 million in 2018, valuing its venture capital assets at $250 million. Ripple, which contributed $25 million of its XRP cryptocurrency in the $150 million fund, was a significant donor.
Ripple, Ethereum, and Coinbase are among the unicorn businesses in which the fund has invested.