A venture capital firm is reportedly aiming to raise $1 billion for two new cryptocurrency-focused investment funds within the next three months.
If the efforts are successful, half of the funds will be designated for early-stage crypto investments, while the other half will target late-stage opportunities, according to sources close to the situation.
Revised Market Conditions Lower Expectations
This VC firm, established by a former board member of Coinbase and federal prosecutor, reportedly has lowered its target from the $1.5 billion it secured in a highly lauded funding round last year, citing different market conditions as the cause for this change in expectation.
However, there is optimism that the new funds will be “oversubscribed.” In March 2022, the firm attained $1.5 billion in its first funding round shortly after its inception and welcomed former executives from companies like Airbnb, Coinbase, and Google’s tech incubator Jigsaw.
The upcoming fundraising initiative is set to conclude in June and is anticipated to rank among the largest crypto funding rounds seen in the past two years. In 2024, another venture capital firm and a digital asset manager both sought similar financing amounts.
Continued Focus on Stablecoins in 2025
Recently, this firm took part in a $70 million funding round for a crypto asset management company alongside various notable investors.
While the primary focus of the upcoming funds is yet to be disclosed, other venture capitalists have suggested that interest in stablecoins will remain strong through 2025.
The CEO of an institutional asset manager recently mentioned that stablecoins represented the strongest validated use case for cryptocurrency in 2024. Meanwhile, a market analyst forecasted that venture capital investments in crypto for 2025 would exceed last year’s levels, though they would not reach the highs seen during the 2021 bull market.
Attempts to get a comment from the venture capital firm went unanswered by the time of publication.