Polychain Capital Raises $200M for Fourth Crypto VC Fund

Polychain Capital has raised $200 million for its fourth crypto venture capital (VC) fund as it seeks to increase its investment in the industry.

According to a Fortune report citing sources with knowledge of the situation, the Polychain Capital funding is the first of what may be additional phases.

Although it has raised a total of $200 million to date, the projected goal is $400 million, and the current close indicates that it will continue to lobby investors while also beginning to deploy capital to entrepreneurs.

As a result of the increased regulatory headwinds faced by the industry as a whole, the Venture Capital ecosystem has not yet witnessed a significant increase in activity.

While growth has been moderate thus far in 2018, the focus of most stakeholders has been on regulatory clarity, resulting in a growing demand for the United States Securities and Exchange Commission (SEC) to approve the first spot Bitcoin (BTC) Exchange Traded Fund (ETF) product.

While it is currently receiving little attention, the massive funding round is evidence that the digital currency industry as a whole is shifting its focus away from the negative aspects of the crypto winter in favor of future development strides.

With its current funding and the more than $2.6 billion it has raised across three funds, Polychain is also doing everything possible to head a future venture capital venture.

Historically, venture capitalists have shown comparatively less enthusiasm for self-funded crypto startups, but this may soon change.

As previously reported, leading venture capitalists denied investing in OPNX Exchange, the trading platform founded by Su Zhu and Kyle Davies, the former managers of the defunct hedge fund Three Arrows Capital (3AC).

In addition, John Ray III, CEO of the insolvent FTX Derivatives Exchange, is seeking investors to resurrect the platform as FTX 2.0.

The venture capital world may be rebooting in anticipation of a new bull run in the medium to long term.