Polychain Capital Is Raising a $200M Crypto Venture Fund, Slide Deck Reveals

Published on by Coindesk | Published on

Polychain Capital founder Olaf Carlson-Wee speaks at Consensus 2019.Cryptocurrency investment firm Polychain Capital is raising $200 million for a second fund aimed at venture investing, a funding goal that would top its first venture fund by $25 million.

According to an investor slide deck obtained by CoinDesk, the second venture fund opened at the beginning of 2020 and is accepting minimum investments of $1 million for up to three years.

Like Polychain Capital's first venture fund, the second fund will back early-stage crypto startups raising pre-seed, seed and Series A funding rounds.

The first venture fund, which raised $175 million from investors who cut checks normally between $500,000 and $5 million, invested most of its capital by the end of last year after launching in the first quarter of 2018, according to the Polychain slide deck.

The deck does not indicate the amount Polychain Capital has raised so far for the second venture fund.

With its first fund, Polychain says it sought exposure to cryptocurrency exchanges and custodians through the investments that were considered foundational to the industry, a strategy that homes in on the Polychain's banner investment, Coinbase, the San Francisco-based crypto exchange and tech unicorn.

To date, none of Polychain Capital's reported venture fund investments has issued a public offering or been acquired.

Such exits traditionally allow a fund to cash out its holdings in a portfolio company and deliver sizable returns to fund investors.

Investors in Polychain Capital, or limited partners, have reportedly counted technology venture capital firms Andreessen Horowitz, Sequoia Capital, Founders Fund and Union Square Ventures - some of which have co-invested in Polychain portfolio companies.

Of those funds, Polychain Capital claims in the new investor deck that its cryptocurrency asset fund - a hedge fund launched in 2016 that trades short-term and long-term positions of digital assets - manages some $550 million.