Top Crypto Venture Capital Firms ( VC )
The Biggest Crypto VC firms
What are Crypto Venture Capital Firms and How do They Work?
Crypto venture capital (VC) firms are a group of investors pooling their money together to invest early in a project or company. The goal is to get in on the ground floor and multiply their investment when it becomes successful.
However, before investing, the VC will review many different projects to determine their viability, growth potential, and return on investment. Most VCs will invest in several different projects to mitigate their risk.
Standard Venture Capital Funding processes through the following five stages:
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Pre-seed:
the initiative is still in its early stages, often a budding idea, and funds are raised from relatives and friends.
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Seed Round:
The project is being tested for viability in the seed phase, which involves appropriate target analysis, competition analysis, and the development of a minimum viable concept. Pitch decks, money flow, frameworks, and other essentials are utilized effectively to look out for funders enthusiastically.
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Series A:
the product has been verified, is expanding and has a solid support community behind it. At this level, making investments is comparatively less risky for investors, but they are more costly and focus on advertising and sales marketing.
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Series B:
the product has a large customer base and is growing; the focus of financing is on branding, sales, human resources, business growth, and customer support.
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Series C:
The emphasis is on expanding product categories and gaining access to foreign markets; the product is commercially feasible.
List of Crypto VC Investors
Pantera
Pantera Capital is an investment firm based in Menlo Park California that specializes exclusively on ventures, tokens, and projects related to blockchain tech, digital currency, and crypto assets. They are also the first U.S. Bitcoin investment firm and their main mission is to spread the adoption of blockchain technology worldwide. They have a proven track record of building a well diversified portfolio and being a value-add to the companies they are invested in.
Draper Associates
Tim Draper launched Draper Associates in 1985, based in Silicon Valley, CA. They have been around since the mid 80’s and pride themselves around investing in industry-transforming companies. However, with the recent shift towards blockchain based companies, Draper Associates has capitalized on the new technology. They have a massive portion of their portfolio invested in crypto and blockchain based companies, some notable ones including, Coinbase, Ledger, Bitwage and CryptoMove.
Binance Labs
As a chain-agnostic incubator and the venture capital arm of Binance, Binance Labs’ identifies, invests, and empowers viable blockchain entrepreneurs, startups, and communities, providing financing to industry projects that help grow the wider blockchain ecosystem.
a16z Crypto
a16z crypto is a venture fund based in Menlo Park California. Their fund is designed to bring all the great things with traditional venture capital, to the modern and advanced crypto world. a16z crypto has been investing in the cryptocurrency space for 5+ years and has structured all crypto investments to be held for 10+ years.
FBG Capital
FBG Capital is a Beijing based digital asset management firm. They focus primarily on blockchain-based capital markets while also incubating revolutionary blockchain projects and companies. They help support early-stage blockchain startups and help guide them to become fully developed companies.
Digital Currency Group
Digital Currency Group is a New York based investment firm that specializes in digital assets. They support blockchain companies ranging from early stage projects to fully established companies with the most famous being Coinbase, Circle, Ledger, Ripple and ShapeShift. While having investments in over 100 different companies in over 30 different countries, they also own and operate Coindesk (the industry leading media platform covering everything digital currency), Genesis Trading (one of the top digital currency brokerage firms), and Grayscale Investments (the largest and most most trusted cryptocurrency asset management firm).
Polychain Capital
Polychain Capital Is a cryptocurrency based investment firm based in San Francisco California. Polychain Capitals main goal is to provide their investors with exceptional returns through actively managing digital asset based portfolios. Founded by Olaf Carson-Wee who started his career as the head of risk and product manager at coinbase, he has created a proven track record of success in the cryptocurrency space and it’s no wonder why Polychain capital is one of the largest crypto based investment firms in the world.
MetaStable
MetaStable is a cryptocurrency based hedge fund based in San Francisco California. They are very stealthy in the fact that they stay away from the publicity and let their hefty returns do the talking. They have delivered such amazing performance such as returns of more than 500% and is one of silicon valley’s top cryptocurrency hedge funds.
Galaxy Digital is a full service digital assets management fund, founded by former Fortress Investments hedge fund manager Michael Novogratz. Galaxy Digital has extensive experience in portfolio management and blockchain technology and plans on bridging the worlds of cryptocurrency and institutional investing together. They provide platform solutions custom-made for a digitally native ecosystem.
Paradigm is a crypto-focused investment firm based in San Francisco founded by Coinbase co-founder Fred Ehrsam and Sequoia Capital partner Matt Huang. Both founders have extensive experience investing in the cryptocurrency space which shows why Paradigm is one of the biggest crypto investment funds in the world. They invest in many different crypto projects and businesses ranging from the earliest stages all the way to full maturity of a company.
Pantera Capital is an investment firm based in Menlo Park California that specializes exclusively on ventures, tokens, and projects related to blockchain tech, digital currency, and crypto assets. They are also the first U.S. Bitcoin investment firm and their main mission is to spread the adoption of blockchain technology worldwide. They have a proven track record of building a well diversified portfolio and being a value-add to the companies they are invested in.