Polychain Capital Eyes $400M For Fourth Fund, Secures Initial $200M Despite Crypto Winter

Polychain Capital, a leading venture capital firm in the cryptocurrency sector, has reportedly secured approximately $200 million in the initial funding round for its fourth fund, despite recent changes in its research team and a shift in investment focus.

The firm aims to raise a total of around $400 million for this fund, Fortune reported.

This fundraising effort indicates a continued interest in the crypto industry, even amid a period of decreased venture funding, often referred to as a "crypto winter."

Polychain Capital, however, has not officially commented on this matter.

Established in 2016 by Olaf Carlson-Wee, the first employee of Coinbase, Polychain Capital has been a significant player in the crypto venture capital arena.

The firm has spearheaded investments in various companies, including the decentralized exchange Uniswap and the African cryptocurrency exchange Yellow Card.

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According to Pitchbook data, Polychain has raised three funds, with a reported $2.6 billion in assets under management.

However, this figure is subject to change due to the firm's liquid token hedge fund.

In 2019, The Wall Street Journal reported a 40% drop in Polychain's assets under management, nearly $400 million, during a downturn in the crypto market.

Despite this, Polychain outperformed the overall value of cryptocurrencies, which fell by 70% during the same period.

Following the raising of its third fund over 2022 and 2023, Polychain has largely deployed the capital, according to an insider.

In March 2023, The Block reported that Polychain was aiming to raise $400 million for its fourth fund.

However, the insider informed Fortune that the target amount is slightly less than $400 million.

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