Coinfund, Polychain Raise $350 Mln in Their Latest Fundraising Rounds

Venture capitals of Coinfund and Polychain managed to raise a total of $350 million in their latest fundraising rounds, a matter which reflects confidence in the crypto industry.

Coinfund, a New York-based venture capital firm, secured $150 million in its latest fundraising round. With 105 companies in its portfolio, the firm focuses on projects on the development of crypto and decentralization, according to Crypto Daily.

This fundraising round will be allocated for emerging sectors, particularly early-stage crypto start-ups, especially those involving artificial intelligence, unlike the previous fundraising rounds that focused on established categories such as DeFi and NFT gaming.

Coinfund’s Co-founder and Chief Investment Officer Alex Felix said that the collapse of cryptocurrency exchange FTX last year pushed developers to double their efforts to complete the roadmap to a decentralized application developer stack, a matter which made, scalability, interoperability, and user experience renewed areas of focus.

It is worth mentioning that Coinfund pumped investments into VC firms, including Giza, an AI-focused project that raised $3 million in seed funding, and Cosmos, an infrastructure project that raised $10 million to develop its Neutron smart contract platform in cooperation with Binance Labs and others.

Also, Polychain Capital, a blockchain-based venture capital company, succeeded in raising around $200 million for its fourth crypto venture capital fund. Polychain sets a total of $400 million as a goal for its fund, an amount of money matching an April filing with the US Securities and Exchange Commission for its Polychain Ventures IV (Parallel) LP fund.

Managing assets of around $2.6 billion, Polychain, founded in 2016, suffered from the crypto winter, which pushed it to lay off some of its employees.

According to a recent report by crypto investment firm, Galaxy Digital, the VC firms invested $2.32 billion in the crypto and blockchain sector in the second quarter of 2023, the lowest since Q4 2020.

The report referred to an ongoing downtrend that began after a peak of $13 billion in Q1 2022. Crypto and blockchain startups raised less money across the last three quarters combined than they did in just Q2 of last year.

Meanwhile, the crypto deals in this period witnessed a slight growth. According to the report, deal activity increased slightly in Q2, with 456 deals completed vs. 439 deals in Q1 2023. The slight gains were driven by an increase in Series A deals to 174 vs. 154 in Q1.