There are so many fundraisings in the digital asset sector lately, that we can only deal with the biggest and most atypical ones. This trend doesn’t seem to be slowing down anytime soon, as every week a new digital asset fund emerges. Now we have Blockchain Capital, which has announced the launch of its fifth fund focused on cryptocurrencies.
Fund V launches, capitalized at $300 million
Founded in 2013, Blockchain Capital has raised a total of $173 million with $295 million in assets under management across its 4 funds. The internal rates of return (IRR) for the top 3 funds are 49%, 53%, and 60% respectively. This represents monumental performance by traditional financial standards. For comparison, the best performing asset class over the last 3 years was US venture capital with an average IRR of 17.5%. Since 2013, the firm has invested in over 110 crypto projects, including Coinbase, Kraken, OpenSea, and Aave.
As early as February 2020, Blockchain Capital revealed plans to launch its fifth fund, which is expected to invest 75 percent of its cash in crypto company stocks and the remaining 25 percent will be split between various digital assets.
In a June 22 press release, Blockchain Capital announced the closing of investments for its new $300 million fund. The round was oversubscribed, meaning that institutional investors had to play hardball in order to get the right to invest. This shows how impressive the profitability of these investment vehicles is.
Among the investors listed in the press release are VISA and PayPal, who will also participate in the company’s strategic partnership program to expand their network within the cryosphere. Jose Fernandez da Ponte, PayPal’s Head of Crypto, emphasizes the importance of meeting and interacting with the entrepreneurs who are shaping the finance of tomorrow.