The Top 5 Crypto VC Funds in 2022

The Top 5 Crypto VC Funds in 2022

Whether you’re looking to invest in one of these funds or simply want to know whose portfolios you should be monitoring, here are the top crypto VC firms in 2022.

The Top 5 Crypto VC Funds in 2022
Darry Port

Updated Jul 20, 2022

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Crypto

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Last year’s crypto startups saw a record $25.2 billion in funding according to CB Insights’ 2021 State of Blockchain report – up 713% from 2020. And while 2022’s crypto bear market has been tough on most institutions, crypto venture capital firms are not letting their foot off the gas. In Q1 of 2022 alone, they poured $9.2B into the space. 

For us retail investors, knowing how much money the top crypto venture capital funds are investing in the crypto industry can further bolster our conviction in blockchain technology. Not to mention, following reputable crypto VCs can expose us to next year’s best-performing cryptos and trends. I mean, Solana (SOL) and other VC-backed L1 ETH Killers had a massive run in 2021 am I right?

So without further ado, let’s see who’s pumping the crypto assets market.

Top crypto venture capital firms

There aren’t too many sectors hotter than blockchain gaming these days…$2.5 billion was invested in blockchain gaming in Q1 of 2022—62.5% of the $4 billion raised in all of 2021.

An investment thesis is the strategy a venture capital fund uses to make money for its investors, also called Limited Partners (LPs). The thesis also serves to differentiate firms from one another through variables like fund size, startup stage, sector focus and so on. In the list below, we’ll highlight some of the top crypto VC funds by the above-mentioned variables. So let’s hop in.

Fund size: A16z crypto (Andreesen Horowitz)

Key details:

  • Year founded: 2013
  • AUM: $7.6 billion
  • Portfolio companies: 107
  • Sectors: Tools & infrastructure, marketplaces, Layer 1 blockchains, NFTs and more
  • Stage: Early & late-stage
  • Team size: 80+
  • Exits: 191

'Fund size' is the amount of capital LPs commit to the fund, which in turn influences the amount that can be invested in each deal, and the caliber of talent that the firm can attract. When it comes to crypto fund size, a16z has everyone else beat.

A16z’s crypto investment arm is headed by two-time entrepreneur Chris Dixon, and backs bold entrepreneurs building the next iteration of the internet known as Web3. Its competitive advantages include an in-house research organization, security teams, plus legal and go-to-market expertise. Coinbase (COIN), MakerDAO (MAKER) and NEAR Protocol (NEAR) are just a few of the most notable digital assets in their portfolio. 

Deals: Digital Currency Group

Key details:

  • Year founded: 2011
  • AUM: $1.3 billion
  • Portfolio companies: 165 companies across 30+ countries.
  • Sectors: Media, financial services, storage, privacy, metaverse
  • Stage: Early & late stage
  • Team size: 51-100
  • Exits: 36

'Deals' refers to the number of investments a venture capital firm makes on behalf of their LPs. Digital Currency Group, run by early Bitcoin investor Barry Silbert, is one of the most prolific investors supporting companies in the blockchain industry, with over 279 deals closed. 

Not to mention, this venture capital company also builds service businesses to fill gaps in the blockchain space. These include media company Coindesk, cryptocurrency brokerage Genesis Trading, and asset manager Grayscale Investments. Lastly, Decentraland (MANA), Filecoin (FIL) and Livepeer (LPT) are among their largest token holdings.

Sector focus: Konvoy Ventures

Key details:

  • Year founded: 2018
  • AUM: $225.8M
  • Portfolio companies: 4
  • Sectors: Blockchain gaming
  • Stage: Early stage
  • Team size: 7+
  • Exits: 3

'Sector focus' is all about the category of blockchain companies the fund specializes in, like Layer 1s, DeFi, and NFTs. And there aren’t too many sectors hotter than blockchain gaming these days. According to a report by DappRadar and the Blockchain Game Alliance (BGA), $2.5 billion was invested in blockchain gaming in Q1 of 2022—62.5% of the $4 billion raised in all of 2021.

Konvoy Ventures, an early-stage investing firm founded by avid gamers Josh Chapman, Jason Chapman, and Jackson Vaughan, exclusively invests in platforms and technologies for gaming. Of the $150 million fund they just raised, 20% to 30% of that money is earmarked for blockchain gaming digital assets. Their portfolio companies include Sky Mavis (creator of Axie Infinity), Sipher, and Ready Player Me.

Smart money morals

Smart money morals

Crypto VCs: Good or evil?

Return on investment: Multicoin Capital

Key details:

  • Year founded: 2017
  • AUM: $605M+
  • Portfolio companies: 96+ 
  • Sectors: L1s, Web3, Infrastructure, metaverse, 
  • Stage: Early Stage
  • Team size: 11-50
  • Exits: 1

Return on investment (ROI) is the way investors evaluate the performance of their investments as compared to benchmarks.

Multicoin Capital is a VC fund run by previous health IT startup founders Kyle Samani and Tushar Jain. Now, what makes Multicoin legendary is that they might just be the highest ROI venture fund of all time through their concentrated bets on projects like Solana, Helium, and The Graph. 

According to one Multicoin LP,  the fund’s gross multiple on invested capital (MOIC) as of Q3 of 2021 is 114.7x. For context, a 10x MOIC is considered exceptional in the VC world. 

Accessibility: Republic

Key details:

  • Year founded: 2016
  • AUM: $214M
  • Portfolio companies: 14
  • Sectors: DeFi, Infrastructure, Social, wallet
  • Stage: Growth-stage
  • Team size: 11+
  • Exits: N/A

All the other funds on this list only accept investments from other venture capital firms, family offices, and high-net-worth individuals. However, Republic lets you invest in crypto projects no matter who you are or where you live. 

As of 2022, over 1M+ people have invested $500M+ through the Republic. The best part? You can get started investing with as little as $100.

republic
Republic

3.7

Startups

A few investment opportunities available on their platform right now include Linen, a DeFi app for non-tech savvy people, and Zebec, a multisig crypto wallet for projects to manage their treasuries on Solana. 

For every crypto venture capital investment you make on Republic, you either receive a loan payable by tokens (Token DPA) or cash in the form of a security. In most cases though, you can only sell your tokens after an initial lockup period of 12 months. So make sure you’re investing in projects you don’t mind HODLing for at least that long. 

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