Key Takeaways
- • Multicoin Capital is staying focused on crypto and resisting the push into standalone AI companies, according to general partner and co-head of venture Spencer Applebaum.
- • Applebaum said Multicoin has an edge in crypto through its track record and founder relationships, and that it has never made a pure-play AI bet.
- • Multicoin's 2022 venture fund totals $422 million, and deployment is slowing because seed valuations fell after the FTX collapse; Applebaum cited seed rounds of roughly $3 million at $30 million post-money valuations in 2023.
- • Paradigm raised $1.2 billion this year for a fund that includes AI and robotics, while Galaxy Research reported roughly $3.9 billion flowed into five new crypto-focused venture vehicles in Q2, the fewest new funds since Q4 2019.
- • Multicoin's hedge fund holds HYPE, the token tied to Hyperliquid, as its largest position, bought on the open market and generally held for years.
Summary
Multicoin Capital is leaning into its crypto specialization and declining to back standalone AI companies, according to Spencer Applebaum, general partner and co-head of venture, who joined the Austin-based firm in 2018. "We believe we have an edge in crypto, and we want to stay true to it," Applebaum said. He argued that many efforts to combine crypto and AI are misguided: "For the most part, people are in search of a problem that doesn't exist at the intersection of crypto and AI." He added that Multicoin has never made a pure-play AI bet and would not carry over its crypto advantages, including relationships that often put it near the front of the line with founders, into AI.
Multicoin is deploying its 2022 venture fund, which totals $422 million, more slowly than originally planned. Applebaum said valuations fell after the collapse of FTX that year: "Throughout 2023, we started seeing seed rounds of roughly $3 million at $30 million post-money valuations." He said the lower valuations naturally stretch deployment.
The competitive backdrop is shifting. Paradigm, together with Framework Ventures Management and Haun Ventures, has moved beyond digital assets, and this year Paradigm raised $1.2 billion for a fund that includes AI and robotics. Galaxy Research reports that roughly $3.9 billion flowed from investors into five newly launched crypto-focused venture vehicles during the second quarter, the lowest count of new funds since Q4 2019. Galaxy also estimates crypto startup financing is keeping pace with last year at roughly $10 billion over the first half, versus $20 billion for all of 2025. Raising new crypto funds has become harder as attention moves elsewhere; Crunchbase reports AI-focused companies captured roughly two-thirds of startup funding in the US and Canada during the third quarter.
The same specialization extends to Multicoin's hedge fund, which buys cryptocurrencies outright. Applebaum said its largest position is HYPE, the token tied to decentralized derivatives exchange Hyperliquid. Multicoin acquired the tokens through open-market purchases and generally holds publicly listed positions for years rather than days or weeks. He declined to disclose the size of the position.
Multicoin is deploying its 2022 venture fund, which totals $422 million, more slowly than originally planned. Applebaum said valuations fell after the collapse of FTX that year: "Throughout 2023, we started seeing seed rounds of roughly $3 million at $30 million post-money valuations." He said the lower valuations naturally stretch deployment.
The competitive backdrop is shifting. Paradigm, together with Framework Ventures Management and Haun Ventures, has moved beyond digital assets, and this year Paradigm raised $1.2 billion for a fund that includes AI and robotics. Galaxy Research reports that roughly $3.9 billion flowed from investors into five newly launched crypto-focused venture vehicles during the second quarter, the lowest count of new funds since Q4 2019. Galaxy also estimates crypto startup financing is keeping pace with last year at roughly $10 billion over the first half, versus $20 billion for all of 2025. Raising new crypto funds has become harder as attention moves elsewhere; Crunchbase reports AI-focused companies captured roughly two-thirds of startup funding in the US and Canada during the third quarter.
The same specialization extends to Multicoin's hedge fund, which buys cryptocurrencies outright. Applebaum said its largest position is HYPE, the token tied to decentralized derivatives exchange Hyperliquid. Multicoin acquired the tokens through open-market purchases and generally holds publicly listed positions for years rather than days or weeks. He declined to disclose the size of the position.
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