An Ultimate List of Crypto VC Investment Funds Rated by CoinLaunch Score

Blockchain venture capital firms are investment organizations with a specific focus on startups that deal with the blockchain technology, cryptocurrencies, NFTs, smart contracts, DApps, etc. In comparison to traditional venture capital funds, crypto VCs do not usually purchase a company’s equity or stocks. Instead, they receive a share of a project’s native cryptocurrency (tokens) that is supposed to bring significant gains to its holders over time.  

Venture investments in blockchain projects are typically considered long-term, with a payback period that often spans 7-10 years or even longer in certain cases when the development stage of a crypto project is delayed. An average amount of investment depends on a stage of a company's life cycle. The size of funding received from a crypto VC fund  during private and seed investment rounds typically ranges from $100,000 to ~$4 million.

Usually, blockchain venture capital firms kick off their journey as a community of sophisticated and aspiring investors or they come from the traditional VC industry. Then they start engaging other high-net individuals into their pool of investors to increase their AUM and expand investment capabilities. As a rule, every crypto VC firm has a dedicated management team that researches and analyzes the market, reaches out to different projects, reviews numerous crypto projects and decides on when, where, and how much to invest. To manage risks, VC firms diversify their investments across various blockchain sectors and products.

To rate new and top crypto VC firms we use a CoinLaunch Score – our special rating system that consists of >80 variables, related to a fund’s performance, investment rounds, management team background, industry coverage, influence and other information. By incorporating a mathematical formula to the analysis of statistical data and official information on each investment fund, we provide the most unbiased and holistic assessment of both well-established and new crypto venture capitalists.

Yes, crypto VC funds are legal, provided that they comply with the relevant regulations and laws governing investment and securities in their region. In most jurisdictions, crypto VC funds are subject to the same regulations and requirements as traditional VC funds. This variety may include such rules as registering with the relevant regulatory bodies, disclosing information to investors, and complying with AML and KYC requirements. However, the regulatory landscape for crypto funds is still evolving, and the specific regulations and requirements vary by jurisdiction. Therefore, it is important for crypto VC funds to seek legal advice and ensure compliance with the relevant regulations and laws in their jurisdiction of operation.

Blockchain venture capital firms invest money in different blockchain and crypto business sectors, including TradeFi, DeFi, CeFi, NFT, GameFi, Blockchain infrastructure and so forth. Cryptocurrency VC firms thoroughly review crypto projects that were researched by their investment teams or pitched by projects themselves. After a careful examination of all investment opportunities, blockchain venture capital firms make strategic investments in projects with the highest potential for long-term success.

The economy of a venture fund is made up of contributions of individual partners (also known as Limited Partners), the founders of a fund, and returns from investing in various crypto startups. Some cryptocurrency VC firms may have backing from larger institutional entities, such as banks, financial institutions, or corporate investment arms. Along with the previously mentioned sources of funding, blockchain venture capital firms can also raise money from renowned investors and institutions based in prominent hubs like Silicon Valley, Wall Street, and London, as well as partner with well-established companies and organizations like Google, Meta, Airbnb, the Ford Foundation, and so forth.