Markets
Top Crypto VCs Recovered as Multicoin Leads with 180% Surge – DL News
- Top crypto venture capital firms Paradigm, Polychain Capital, Multicoin Capital, Haun Ventures, and Blockchain Capital have valued their assets higher in 2023 than in the previous year.
- Multicoin saw the biggest gain among the funds analyzed by DL News, with its portfolio rising 180%.
Venture capitalists are the lifeblood of crypto, and luckily for founders, some top crypto VCs say their assets rose sharply last year from the year before.
The increases came alongside a rise in the broader crypto market.
Multicoin Capital, a venture capital fund with close ties to Solana, saw the value of its assets jump nearly 180% to $3.81 billion in 2023 from around $1.36 billion in 2022, according to with Securities and Exchange Commission filings.
Polychain Capital, which was founded by former Coinbase employee Olaf Carlson-Wee, saw the value of its fund nearly double to $5.04 billion in 2023 from $2.61 billion the year before.
And Blockchain Capital, which announced in September 2023, which had raised another $580 million for more crypto investments, said the value of its assets under management had increased from nearly $1.74 billion to $2.36 billion.
Others that saw smaller increases include Paradigm, which saw its fund value surpass $10 billion; Haun Ventures, which valued its assets at more than $1.5 billion; and Andreessen Horowitz, whose massive fund, which counts crypto among its investments, was worth $56 billion at the end of 2023.
Representatives from five of the venture capital firms mentioned above did not immediately respond to a request for comment from DL News. Multicoin declined to comment.
Crypto Investments Come Back
The recovery in the fortunes of the biggest crypto VCs reflects the revival of the broader crypto market.
Join the community to receive our latest stories and updates
In 2022, top crypto investors said their assets under management were substantially lower than in 2021, according to the newcomer.
Paradigm reduced its portfolio by 34% and Multicoin said its assets fell 85% in value.
And the total value in crypto raises fell to a monthly low of just under $300 million in July 2023, from over $7 billion in October 2021, according to data from DefiLlama.
More than a year and a half later, crypto is back in business.
Bitcoin Reached an all-time high of more than $71,000 in March, according to CoinGecko, and crypto VCs invested around $1 billion in the industry in February.
More recently, however, venture capitalist enthusiasm has waned, with May only recording about $200 million in raises.
And despite renewed optimism for the industry, some crypto VCs have yet to recover to the highs of the last bull market.
In 2021, Paradigm stated that its assets under management were $13.2 billion, and in 2022, it stated that it employed 73 employees. Now it has just 59 employees.