The San Francisco-based venture firm Blockchain Capital attracted $300 million for its fifth investment fund. Visa, the payments company, and PayPal became limited partners (LP) in the structure.
For PayPal, this is its first such agreement with a blockchain- and digital asset-focused fund. While both companies directly invested in several crypto startups, the LP status means that an external manager will deploy the funds on their behalf into a broader range of assets.
“PayPal seeks to foster the development of an ecosystem of companies making digital assets more accessible, useful and secure. Investments in the new Blockchain Capital fund will allow us to collaborate with entrepreneurs shaping the future of the decentralized economy and the new wave of financial services,” — Jose Fernandez da Ponte, PayPal’s Vice President.
Blockchain Capital announced plans to launch a new venture fund of $250 million in February 2020. Subsequently its size was expanded to $300 million.
According to the press release, Fund V was supported by strategic investors, pension funds, family offices and large university endowments. The venture firm noted that demand for participation in the vehicle exceeded expectations.
In conversation with CoinDesk, Blockchain Capital general partner Spencer Bogart noted that payments giants are seeking investment opportunities in blockchain because they believe in its potential. But they need an “experienced guide” to help them navigate.
“There is nothing better than pairing an early-stage startup with companies like Visa and PayPal, helping them close a commercial deal, and ensuring that Visa and PayPal have solutions for the products that this startup wants to launch,” — Spencer Bogart, Blockchain Capital’s general partner, said.
According to the general partner, Blockchain Capital will invest these $300 million in early-stage startups. The firm began deploying capital from the new fund about a year ago, though most of the funds have remained untouched.
Assets under management stand at roughly $1.5 billion. Since its founding in 2013, it has made more than 110 investments. The portfolio includes Coinbase, Kraken, Anchorage, OpenSea, Aave and others.
In May 2021, Cowen’s investment arm attracted more than $46 million for a fund focused on the digital assets industry.
Subscribe to ForkLog news on VK!