Digital asset management firm Parafi Capital has successfully raised $120 million from investors, including Theta Capital Management and Accolade Partners, signaling strong growth in crypto funds.
The capital raise follows Lemniscap, a crypto-focused venture capital firm that raised $70 million to invest in startups.
Crypto fundraising gets a boost as market sentiment improves
Crypto firms have been raising capital this year as cryptocurrency prices recover, improving overall market sentiment.
According to a Bloomberg report, ParaFi’s fundraise will be partly used to acquire general-partner (GP) stakes in other crypto funds, with plans to put together a portfolio of as many as 50 such stakes over the next three to five years.
Founded in 2018, Parafi Capital has been investing in various digital asset companies. Earlier this month, Parfin, a digital asset infrastructure provider, announced completion of a $10 million Series A funding round led by ParaFi Capital.
Explaining its strategy, Ben Forman, founder of ParaFi, told Bloomberg:
“We’ve watched the crypto-fund landscape evolve closely over the years. We believe there will be many more crypto funds as institutional capital enters this space. It’s important to have specialization and focus, whether it’s across geography, theme or type of investment.”
Crypto firms, VCs line up for capital boost
Several crypto companies and VCs are either already raising capital or are in the process of raising new funds. Venture capital firm Lemniscap’s $70 million fundraise will be spent on a range of blockchain-based businesses, including zero-knowledge infrastructure, consumer applications, emerging Bitcoin ecosystems, security, and decentralized physical infrastructure (DePIN).
The new fund is also backed by Accolade Partners, a fund of funds that targets early-stage ventures in the blockchain industry.
Wireless internet service provider Andrena secured $18 million in funding to launch DAWN, a decentralized autonomous wireless network. The investment was led by Dragonfly, with participation from CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, ParaFi, and other investors.
Source: DAWN
Open-source block explorer Blockscout has closed a $3 million seed round led by 1kx, to improve the startup’s product suite and user experience as well as expand its explorer-as-a-service (EaaS) offering.
Game developer Cartridge secured $7.5 million in a Series A funding round led by BITKRAFT Ventures, to support the recently launched Dojo 1.0, an open-source framework and toolset for developers working on blockchain-based games.
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