City Venture Financial News

Over $350 million has been raised by crypto venture capital firms Polychain Capital and Coinfund, whirespective reported raises of $200 million for a new investment fund and $152 million for a seed fund.

Venture capital firms are continuing to invest less money in the crypto sector, after five consecutive quarters of declines, according to a new report from crypto financial services firm Galaxy Digital.

Despite facing regulatory scrutiny in the United States, crypto firms continue to innovate, with nearly half of all capital investments flowing toward U.S. crypto businesses, according to a recent report.

By Krystal Hu

Venture capital firm Headline used to be in one of San Francisco's most eye-catching skyscrapers: the pyramidal Transamerica building that has defined the skyline for decades. Employees enjoyed the views from the 43rd floor and the convenience of being downtown. Then came the pandemic.

From thumbs-ups from friendly strangers to midnight police searches, a Bitcoin-themed van continues a whirlwind tour around Europe.

As crypto prices remain at lower levels, venture capital (VC) funding also recorded one of its worst quarters since 2021. Despite this, executives in the space remain optimistic about the industry’s long-term potential. 

Initial coin offerings (ICOs) may have hampered the development of the Bitcoin ecosystem, with market research reflecting a massive slant towards non-Bitcoin investments by venture capitalists over the past five years.

The crypto space has been in an uneven state around the world, with Web3 startups flourishing in the Middle East and Asia, while North American crypto entrepreneurs face challenges under tough macroeconomic and regulatory conditions, according to Animoca Brands CEO Yat Siu. 

Asset manager Fidelity is expected to file with the U.S. securities regulator for a spot bitcoin exchange-traded fund, joining other big money managers seeking to launch bitcoin ETFs, the Block reported on Tuesday citing a source familiar with the matter. In the past two weeks, BlackRock, WisdomTree, Invesco, VanEck, and Bitwise have filed new applications with the U.S. Securities and Exchange Commission (SEC) for spot bitcoin ETFs, sending the price of bitcoin to a more than one-year high of over $31,000 on June 23. Fidelity declined to comment. The Boston-based financial firm is also part of a consortium that includes market makers Citadel Securities and Virtu Financial, retail broker Charles Schwab, and venture capital firms Paradigm and Sequoia Capital, which recently launched a crypto exchange called EDX Markets.

American venture capitalist Alfred Lin, a partner at Sequoia Capital, stood up for the firm’s multimillion-dollar investment in the now-bankrupt crypto exchange FTX. 

The animus of the entire crypto world is focused on Securities and Exchange Commission Chair Gary Gensler.

On June 21, OPNX exchange, a platform for trading claims against bankrupt crypto entities, announced a new ecosystem partner dubbed "3AC Ventures." According to developers, "the partnership will invest in projects building in the OPNX ecosystem and working towards a decentralized future." OPNX was founded by Su Zhu and Kyle Davies, who co-founded the now-bankrupt Singaporean hedge fund Three Arrows Capital (3AC). 

Crypto venture capital investments were on the rise for the second month in a row in May despite the generally declining economic backdrop. Funding amounts surged 34% from April, and the number of individual deals jumped 62%, according to data from Cointelegraph Research’s Venture Capital Database.

A combination of escalating interest rates and a tight regulatory environment in the United States has driven a $417 million outflow from the crypto industry in the past eight weeks, with halts in trading for many altcoins draining liquidity and prolonging the ongoing crypto winter.

Venture capital firm Andreessen Horowitz (a16z) is set to open its first office outside of the United States this year, adding to the backdrop of U.S.-based firms seeking greener pastures outside of the country.

In this article

Cointelegraph presents Pitch Room, a new stage in the effort to boost innovation in the crypto space, dedicated to investors interested in deal flow. Pitch Room opens doors for promising startups in the Web3 space, exploring new markets and building solutions with the potential to disrupt the industry. Investors can view a one-page summary of each company, a two-minute elevator pitch and an in-depth presentation. The goal of Pitch Room is to bridge venture capitalists and private equity managers with innovative firms at the cutting edge of the crypto space.

Venture capital firm Sequoia announced an impending split that will see the company break into three distinct partnerships serving the United States, China, and Asian markets separately. 

Venture capital firm the Digital Currency Group (DCG) and its CEO Barry Silbert have requested to consolidate two class-action lawsuits over alleged losses during the crypto winter.

Venture capital firm, Tribe Capital, has launched a new crypto fund to raise $100 million.