Key Takeaways
- • Multicoin Capital raised $250 million for its third crypto fund in October 2021, while Variant announced a second crypto fund totaling $125 million in the same month.
- • Paradigm raised $2.5 billion in November 2021, and its assets under management have reportedly climbed to $13.2 billion.
- • Haun Ventures announced an inaugural $1.5 billion fund, Electric Capital closed a $1 billion fund, and Bain Capital Ventures announced a $560 million crypto fund, all in the prior month.
- • Pantera Capital reportedly plans to close a $1 billion fund, while Blockchain Capital is raising a $400 million fund VI and a $400 million opportunity fund.
- • Andreessen Horowitz is raising a $3 to $3.5 billion fourth crypto fund and a $750 million to $1.5 billion crypto seed fund, with its dedicated crypto funds holding about $9 billion in AUM.
Summary
Newcomer, writing on Substack, reports that a wave of large crypto fundraises in late 2021 has pushed capital into digital asset vehicles at a scale that rivals traditional venture funds. Multicoin Capital announced that it raised $250 million for its third crypto fund in October, and Variant announced its second crypto fund, totaling $125 million, in the same month. Paradigm announced that it raised $2.5 billion in November. Haun Ventures announced an inaugural $1.5 billion fund, Electric Capital closed a $1 billion fund, and Bain Capital Ventures announced a $560 million crypto fund, all in the period preceding the article.
The article notes that several firms are also accumulating large asset bases through the reinvestment of returns rather than only through new fundraising. Newcomer previously reported that Paradigm's assets under management had climbed to $13.2 billion and that Andreessen Horowitz's dedicated crypto funds held about $9 billion in AUM. Pantera Capital reportedly plans to close a $1 billion fund, and Blockchain Capital is raising a $400 million fund VI and a $400 million opportunity fund, according to an investor presentation the author obtained. Andreessen Horowitz is in the process of raising a $3 to $3.5 billion fourth crypto fund and a $750 million to $1.5 billion crypto seed fund.
The author obtained fundraising decks from several crypto funds, which he says show how top firms position themselves to prospective limited partners. The figures cited reflect performance from mid to late 2021. The article does not reproduce the decks themselves. One example cited is Multicoin's Fund I, which reportedly shows 15x net total value to paid-in capital, according to publisher context.
The article also places the data against a weaker market backdrop, noting that Bitcoin was down 35% over the prior 12 months while Ethereum was up 35% over the same period. Newcomer links the continued interest of traditional venture firms, including Sequoia, Bessemer Venture Partners, and Lightspeed Venture Partners, to returns that the author describes as sufficient to explain the shift into crypto.
The article notes that several firms are also accumulating large asset bases through the reinvestment of returns rather than only through new fundraising. Newcomer previously reported that Paradigm's assets under management had climbed to $13.2 billion and that Andreessen Horowitz's dedicated crypto funds held about $9 billion in AUM. Pantera Capital reportedly plans to close a $1 billion fund, and Blockchain Capital is raising a $400 million fund VI and a $400 million opportunity fund, according to an investor presentation the author obtained. Andreessen Horowitz is in the process of raising a $3 to $3.5 billion fourth crypto fund and a $750 million to $1.5 billion crypto seed fund.
The author obtained fundraising decks from several crypto funds, which he says show how top firms position themselves to prospective limited partners. The figures cited reflect performance from mid to late 2021. The article does not reproduce the decks themselves. One example cited is Multicoin's Fund I, which reportedly shows 15x net total value to paid-in capital, according to publisher context.
The article also places the data against a weaker market backdrop, noting that Bitcoin was down 35% over the prior 12 months while Ethereum was up 35% over the same period. Newcomer links the continued interest of traditional venture firms, including Sequoia, Bessemer Venture Partners, and Lightspeed Venture Partners, to returns that the author describes as sufficient to explain the shift into crypto.
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