For years, crypto venture capital firms invested almost exclusively in crypto and blockchain startups. Now, some of the industry's biggest firms are starting to look beyond the sector.
Earlier this week, Framework Ventures raised a $400 million fourth fund to invest in what it called "frontier technologies" that include crypto, AI, robotics, energy, fintech, and more. Paradigm is reportedly raising as much as $1.5 billion for a broader frontier-tech fund focused on crypto, AI, and robotics. Haun Ventures raised a $1 billion second fund to invest primarily in crypto and blockchain companies, but also in firms in financial services, the AI agentic economy, and alternative assets. YZi Labs, formerly Binance Labs, has also expanded beyond web3 into AI and biotechnology. Not every major crypto VC is broadening its mandate, however. a16z Crypto and Dragonfly, which have also raised new funds this year, remain focused on crypto.
To better understand what's driving the shift, I asked crypto investors why some of the industry's biggest VCs are broadening their investment focus, why others remain crypto-focused, and what the future of crypto venture capital looks like.
Investors pointed to several reasons behind the shift, including a maturing crypto market, the rapid rise of AI and other technologies, larger funds seeking new opportunities, and the growing overlap between blockchain and adjacent industries.
