Crypto venture capital firms Polychain Capital and Coinfund have raised over $350 million for their investment fund. Despite this achievement, Polychain aims to reach a total fundraising goal of $400 million for the new fund and has adjusted its research team. Currently, Polychain manages three funds totaling around $2.6 billion in assets under management.
Similarly, Coinfund, a VC firm, raised $152 million for its fourth seed fund, exceeding its initial target of $125 million by $27 million. This increase was attributed to a renewed interest in the crypto industry.
July is CoinFund’s 8th anniversary, celebrating the journey of @jbrukh @flexthought and team from kitchen table to cap table. We’re thrilled to bolster this milestone with the announcement that CoinFund has closed its $158M Seed IV Fund to back the leaders of the new internet
🧵 pic.twitter.com/6kwBFuIHiy— CoinFund (@coinfund_io) July 18, 2023
However, venture funding for crypto and Web3 startups has significantly declined by 76% compared to the previous year, as business analytics firm Crunchbase reported.
Investors have grown cautious about the crypto sector due to several high-profile project failures, such as Do Kwon’s Terra Money ecosystem and Sam Bankman-Fried’s FTX, which have occurred over the past two years. As a result, there has been a shift towards more traditional market sectors, and venture capitalists have become more hesitant in making new investments, except for artificial intelligence.
Since January 1, the AI industry has attracted over $12 billion in venture funding as investors seek to capitalize on its promising potential.