10 Best Crypto VC Firms & Web3 Funds for 2024

A crypto venture capitalist (VC) is an investment firm that provides capital to new blockchain-related startups in exchange for equity. Along with financial support, the best crypto VC firms offer operational experience, distribution, and partnerships to the startups they invest in.

This guide reviews the best crypto VC firms of 2024 based on their portfolio of projects, investment exposure, and services.

10 Best Crypto VC Funds Reviewed

In this section, we explore the best crypto VC firms in the market – touching on who they are and what kind of services each offers.

1. Block Labs – Overall Best Crypto VC Firm in 2024

Block Labs is a venture capital investment firm that provides funds and strategic advice to crypto businesses. In addition to financial assistance, the firm helps new crypto entrepreneurs steer their business plans and even helps them find the right board members.

This VC firm focuses on projects that can help shape the future of Web3 – digital tokens, NFTs, metaverse, or any other innovation. Block Labs has already funded some of the fastest-rising cryptocurrencies in the market.

Tamadoge is not the only successful venture of Block Labs; this VC firm also has stakes in other popular Web3 platforms, such as NFT Launchpad and CryptoNews.

However, Block Labs’ website notes that the firm is comfortable providing funding at all levels of the investment lifecycle. This sets the firm apart from its rivals since many focus solely on early-stage projects. Since Block Labs is happy to work with anyone, the firm is the ideal partner for startups and established projects looking to expand.

The firm also supports crypto startups by offering strategic advice from the highly experienced development and marketing team. This team boasts over 25 years of combined industry experience, ensuring project founders can receive targeted and tailored input that boosts their chances of success.

Regardless of the funding stage, Block Labs is committed to assisting development teams in achieving their goals. Since Block Labs’ team contains over 300 developers, marketing specialists, and designers, the firm can work with any and all requests.

Those looking to partner with Block Labs can contact the firm through the online contact form.

2. Coinbase Ventures – Crypto VC Firm With 250 Investments

Coinbase Ventures is the investment arm of Coinbase, one of the best crypto exchanges for digital assets. This investment firm has partnered with many crypto startups and funds projects across all categories of the web3 space.

This includes layer 1 protocols, blockchain infrastructure, DeFi, NFT, metaverse, and more. Like Block Labs, Coinbase also adopts a collaborative approach to investing. That is, it funds projects and supports founders with operational experience and strategy development.

Coinbase Ventures has an extensive portfolio and has invested in many popular crypto projects. With a portfolio that consists of more than 250 crypto projects, Coinbase Venture has been very active in its investment journey. Some of the most notable holdings of Coinbase Ventures include OpenSea, Uniswap, Graph Protocol, Alchemy, Etherscan, and more.

3. Andreessen Horowitz – Venture Capital Firm With Tech-Oriented Investments

Andreessen Horowitz, known as A16z, is a well-established venture capitalist. This VC firm does not focus entirely on the crypto market but invests in sectors such as healthcare, consumer products, enterprise, games, fintech, and more.

However, almost all of its investments go into tech-related companies. Its tech portfolio consists of 53 crypto projects, which are in their active phase. This includes crypto platforms such as Compound, OpenSea, Celo, TrustToken, and more. But perhaps Andreessen Horowitz might be best known for its investment in Coinbase – which has been hugely successful for the VC firm.

Andreessen Horowitz has built a wide network of experts across tech, talent, media and marketing, and key opinion leaders. The firm provides funding to tech companies that are in seed, venture, and late stages. As of writing, this VC firm has around $35 billion in assets under management.

4. Jump Crypto – Supporting Innovation in the Blockchain Space

Jump Crypto is part of a larger company that falls under the umbrella of Jump Labs. Established in 2015, this firm has offices in Europe, Asia, and North America. The mission of Jump Crypto is to support projects that have the vision but lack the required liquidity to accomplish their goals.

Like many of the best cryptocurrency venture capital firms, Jump Crypto offers engagement as partners rather than investors. The firm’s portfolio comprises over 50 projects – across blockchain, crypto infrastructure, and fintech.

Jump Crypto also invests in blockchain-based projects right from the seed stage. This VC firm has joined forces with some of the most successful crypto projects in today’s market, such as Solana, Fantom, Wormhole, and more.

As of writing, it is actively working with three blockchain startups – Silo, Firedancer, and Cyclone – to develop crypto infrastructure solutions.

5. Animoca Brands – Gaming Company Investing in Blockchain Projects

Animoca Brands was established as a game software company in Hong Kong. However, over time, it continues investing in innovative crypto projects. Today, it is one of the biggest crypto venture capital firms, with an estimated $1.5 billion in crypto holdings.

Animoca Brands has invested in over 380 cryptocurrency-related projects, operating across sectors of blockchain gaming, DeFi, infrastructure, digital wallets, and the metaverse. Its portfolio contains some of the best blockchain games in the market, such as Colossal, Axie Infinity, OpenSea, Yield Guild Games, Harmony, Alien Worlds, Star Atlas, and others.

As we noted above, Animoca Brands is primarily a gaming developer. This company is also behind iconic crypto games such as The Sandbox, Phantom Galaxies, Revv Racing, and more. Animoca Brands is also active in the NFT space and has issued over a dozen digital-fungible tokens linked to its crypto games.

6. Binance Labs – Crypto VC Firm Funding Decentralized Projects

Like Coinbase, Binance is also best known for its crypto exchange services. However, since its launch, Binance has evolved into a full-fledged crypto ecosystem, complete with its own native blockchain and a token launchpad.

Its investment arm, Binance Labs, was created to empower crypto entrepreneurs and startups. The VC firm has been operating in crypto for over three years and has invested in projects on more than five continents. Binance Lab’s portfolio features over 200 projects, including PancakeSwap, BitTorrent, Axie Infinity, Kava, Koi Trading, and more.

Interestingly, Binance Labs also has an Incubation program – an initiative to find the best crypto projects. The contest has already completed five seasons and is hugely popular among web3 developers. Every season, Binance handpicks top-performing projects and offers them a tailored curriculum of extensive resources.

7. Blockchain Capital – Crypto Venture Firm With Security Token

Blockchain Capital is another leading VC firm in the crypto industry. This establishment has been around for nine years and has invested in over 160 projects. It mainly targets tech-related products in crypto mining, supply chain, tokenization, gaming, financial services, and data.

Blockchain Capital has an impressive portfolio of highly successful crypto platforms. The prominent names in the firm’s portfolio include Coinbase, Aave, OpenSea, Ripple, Uniswap, and Filecoin.

In 2017, Blockchain Capital launched the first security token, BCAP. Each BCAP token represents an indirect interest in the Blockchain Capital III Digital Liquid Venture Fund.

In simple terms, the price of BCAP tokens will mirror the value of the firm’s underlying portfolio. This means that by owning BACP, retail investors can gain exposure to the growth of Blockchain Capital’s liquid venture fund.

8. Dragonfly Capital – Investment Firm With Multiple Venture Funds

Dragonfly Capital is a crypto-centered investment firm based in North Carolina. As of writing, it launched in 2018 and has set up three crypto venture funds. To date, Dragonfly Capital has invested in more than 60 companies across all stages of development.

The first and second funds developed by Dragonfly Capital were launched in 2018 and 2021 – for $100 million and $225 million, respectively. Its third venture fund was initiated in April 2022 for $650 million.

Some of the top holdings of Dragonfly capital include Spacemesh, Showtime, Woo Network, Hedgehog, and Matrixport. In August 2022, Dragonfly also acquired another crypto venture firm, MetaStable Capital, which further expanded its portfolio.

9. Pantera – Institutional Asset Manager Focused on Crypto 

Pantera is one of the most established institutional venture firms to invest in blockchain. Pantera claims to be the first US institutional asset manager to offer hedge funds for crypto. According to this VC firm, its first venture fund was launched in 2013, when Bitcoin was priced at around $65.

The firm primarily invests in pre-seed businesses focused on building blockchain infrastructure. Pantera has successfully closed three venture funds, which raised $12 million, $23 million, and $175 million, respectively. As of writing, the VC firm has assets worth $4.5 billion.

Pantera is also one of the few venture firms that offer web3 VC funds directly to retail investors. It has set up five investment funds that offer investors exposure to Bitcoin, blockchain startups, pre-launch cryptos, and more.

10. Shima Capital – Crypto Venture Fund for Early-Stage Blockchain Startups

Founded in 2021, Shima Capital is a relatively new crypto VC fund. The firm is based in California and seeks to invest in early-stage blockchain startups and crypto entrepreneurs.

Nevertheless, Shima Capital has already funded many projects in crypto analytics, DeFi, metaverse, and gaming. Shima Capital’s core team is made up of researchers, software engineers, and other industry experts who are passionate about expanding the crypto world and web3 ecosystem. In August 2022, Shima Capital raised its first fund worth $200 million.

What are Crypto Venture Capital Firms and How do They Work?

In simple terms, venture capital firms fund startup companies and entrepreneurs. Conventionally, VC firms offer funding at a project’s ‘expansion stage’. However, VC funding is now provided right from the pre-seed phase of a crypto startup.

Moreover, crypto VC firms do not always presume the role of an investor. Sometimes, they also offer technical or managerial know-how. Depending on the terms of the investment, VC firms are compensated in many ways – such as equity, ownership stake, or voting rights.

So, why does a new crypto project need VC funds? Crypto startups generally search for VC financing when they cannot get funding from traditional banking institutions and lenders. This might be because the crypto project in question could still be in its early stages, or their product might not yet be viable to be introduced in the market.

On the other hand, venture capitalists are often willing to take on early projects, searching for a generous payoff – if and when the startup becomes successful. There is a high level of risk associated with this strategy.

To manage the risks involved with new projects, crypto venture capitalists typically invest in multiple endeavors at a time.

Crypto VC firms are sought out by startup companies operating in the blockchain space for funding or strategic support.

• Having said that, crypto VC funds also come with opportunities for investors.
• These days, several venture capital firms are setting up crypto VC funds that are accessible to investors.
• For example, Pantera has several crypto VC funds that retail investors can access directly.
• From an investor’s perspective, a crypto VC fund functions like a managed portfolio.
• When investors put money into a crypto VC, the firm distributes its funds into different investments.
• In return, investors can generate returns from the growth of the respective startup crypto companies.

However, remember that not every crypto VC firm accepts funds from retail investors. This is because, as we pointed out above, investing in VC funds is risky. Many of the new crypto projects might not even launch, meaning the VC firm could lose its investment.

When picking their investments, VC firms look for digital coins with the most upside. Before investing in a new crypto endeavor, VC firms evaluate the project by assessing its market prospects, growth potential, and possible ROI.

The standard process of VC funding can be broken down into five stages:

• Pre-Seed – At this stage, the project is often only an idea, and the developers themselves raise the funds.
• Seed Round – In this phase, the project is being tested for its viability. This involves target analysis, competitive research, and more. At this stage, founders prepare for pitches with investors using proposed frameworks and business plans.
• Series A – By the time a crypto project reaches the series A stage, its product is verified and also has a solid community supporting it. Evidently, investing in new crypto projects at this stage is less risky – as the funds are mostly allocated to promotions and marketing.

Unfortunately, many crypto projects fail to complete the first two phases successfully. If this is the case, the project can attempt to raise funding from VCs for stages series B and C to expand the startup.

Crypto entrepreneurs might also want to check out our list of the best financial PR agencies to get their startups more exposure in the blockchain industry.

What Services do Crypto VC Firms Offer?

VC firms initially focused on providing financial assistance to upcoming projects. However, today, the best crypto VC firms offer entrepreneurs an extensive range of resources.

• Capital Assistance

The main reason why crypto project founders approach VC firms is for funding.

For instance, a crypto venture capital firm might agree to invest $1 million in exchange for 30% equity in the project. Another VC firm might offer a higher amount but at the same time, demand more in return or ownership stake.

Moreover, crypto entrepreneurs should also think of what the ‘liquidation preference’ of the VC is. The liquidation preference states how much the founders will pay the investor if the project fails.

• Operational Assistance

VC firms have also started offering support in the strategic development of the crypto projects they have invested in. This operational assistance could come from strategy building, marketing, or partnerships.

Some VC firms also offer entrepreneurs access to legal resources and market insights. For instance, Block Labs offer complete assistance to their crypto entrepreneurs – from start to finish. It offers tailored solutions to each startup under its wing, ensuring that entrepreneurs have all the necessary resources.

• Community Events

VC firms like Blockchain Capital also host community events, conferences, and meetups. Such events pave the way for crypto entrepreneurs to network, meet new people, and expand their community.

Crypto venture firms can offer a blockchain startup help with launching their digital tokens, getting funds, and finding partnerships.

How We Rank the Best Crypto VC Firms

We have paid close attention to several factors when choosing the best crypto capital venture funds for the purpose of this guide, such as:

• Portfolio and investment size
• The type of services offered
• The reputation of the venture firm
• The credentials of the management team

That being said, VC firms are always at risk regardless of the type of investment.

Any investor with stakes in digital assets knows how tricky it is to find the best future cryptocurrencies. Since venture capitalists look for crypto projects in their early stages, it is even more challenging to know which of their investments will be successful and which could lead to failure.

Moreover, the crypto market seems to be extremely volatile at the moment. Before investing or partnering with VC firms, crypto entrepreneurs and individuals should be aware of the high level of uncertainty and the risk of failure.

Conclusion

We have highlighted the best crypto VC firms and explained how they work. Crypto developers can partner with one of these top VC firms to acquire funding and profit from their operational experience.

One of the top crypto vc is Block Labs, offering a wide range of services, such as marketing and strategy development.

Whether you’re an investor, a developer, or just curious, it’s important to check their investment track record, the quality and diversity of their investment portfolio, their network and partnerships, and any value-added services they offer.

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