CoinFund, the blockchain investment firm, has raised an $83 million funding round to bootstrap promising crypto-focused startups.
It has been reported that the oversubscribed fundraise was led by Venrock, a California-based venture capital firm founded in 1969.
However, CoinFund said that several other “forward-thinking institutional allocators” contributed to the raise, but did not name them.
David Pakman, a partner at Venrock, said:
“CoinFund’s deep connectivity throughout the entire crypto ecosystem, the firm’s critical technical insights and its ability to incubate projects at the earliest stages differentiates them from other investors in the space.”
Jake Brukhman, the CEO of CoinFund, said that the capital raise demonstrates that institutions are keen to back budding blockchain and cryptocurrency startups. He said that the funding will go toward expanding the team and further developing in-house capacity.
The report said that the latest haul represents CoinFund’s third successful venture capital raise. This year alone, the company has backed a total of eight projects, including nonfungible token (NFT) marketplace Rarible and ClayStack, a liquid staking protocol.
As reported, CoinFund was behind Solana Labs’ massive $314 million private token sales that closed in June. CoinFund has also backed leading blockchain projects The Graph, Blockdaemon, Maker, Ethereum, Coinbase, and Polkadot. Investors’ appetite for early-stage blockchain companies appears to be growing despite alarming signs of a cryptocurrency bear market. This year alone, venture capitalists have poured billions into blockchain and crypto-focused startups.
Thus, firms like Andreessen Horowitz have also established multibillion-dollar funds earmarked specifically for cryptocurrency companies.