Polychain Capital and Coinfund, two cryptocurrency venture capital companies, have received a combined investment of over $350 million, with disclosed raises of $200 million and $152 million for new investment and seed funds.
July 18 Forbes article reveals that Polychain raised $200 million in the “first close” of its fourth investment fund. After the closure, Polychain will have partnerships with investors and be able to start funding initiatives.
Polychain still hopes to gather $400 million for the new fund, despite the large boost. Due to its changing spending priorities, Polychain also laid off three members of its research team.
As per Pitchbook data, Polychain is now in charge of three funds with a combined $2.6 billion in assets under management.
July 18 Twitter post reveals, VC firm Coinfund also secured $152 million for its fourth seed fund, despite the fact that VC financing for cryptocurrency companies has been steadily falling for over a year.
According to Coinfund CEO Jake Brukhman, the company had set a goal of obtaining $125 million but was able to raise an additional $27 million thanks to growing interest in the sector.
Data from Crunchbase, a business analytics company, shows that the overall amount of venture capital for crypto and Web3 firms has decreased by 76% from this time last year.
Investors are allegedly becoming more cautious about the cryptocurrency industry, after the demise of Sam Bankman-Fried’s FTX, Do Kwon’s Terra Money ecosystem and a number of other well-known initiatives over the course of the last two years.
As a result, this has led to a shift away from less innovative business segments and many venture capitalists are now suspicious of all new investments, with artificial intelligence being the one prominent exception.
Over $12 billion in venture money has been invested in the AI industry as of January 1 as investors aim to profit from the emerging market.
