Two crypto venture capital firms, Polychain Capital and Coinfund have managed to secure more than $350 million in investment seed funds successfully.

Polychain Capital’s Successful First Close for $200M Investment Fund

Polychain Capital, a prominent crypto venture capital firm, has managed to raise an impressive $200 million in the “first close” of its fourth investment fund, as reported by Forbes on July 18. Sources familiar with the matter revealed that the firm has secured agreements with investors and is now ready to provide funding to promising startups and projects in the crypto space.

Despite achieving this significant milestone, Polychain has ambitious plans to raise a total of $400 million for the new fund. To align with its new investment priorities, the firm has also made the decision to part ways with three members of its research team.

Coinfund Surpasses Expectations with $152 Million Seed Fund

Not to be outdone, Coinfund, another prominent crypto venture capital firm, managed to exceed expectations by raising $152 million for its fourth seed fund, according to a Bloomberg report on July 18. The company initially aimed for $125 million but successfully raised an additional $27 million due to a resurgence of interest in the crypto industry.

An image of crypto coins

Crypto and Web3 Venture Funding Declines Amidst Caution

While Polychain Capital and Coinfund’s recent fundraising successes are encouraging signs for the crypto industry, the overall venture funding for crypto and Web3 startups has experienced a significant decline of 76% compared to the previous year, as per data from Crunchbase, a reputable business analytics firm.

The crypto sector faced skepticism following high-profile project collapses like Do Kwon’s Terra Money ecosystem and Sam Bankman-Fried’s FTX over the last two years. This caution led many investors to shift towards more traditional market sectors, causing a general decline in VC funding for crypto projects.

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