TheBlock
Crypto venture firms are increasingly writing checks outside pure crypto, according to the latest edition of The Funding, The Block's fortnightly newsletter authored by its longest-serving editorial member, Yogita Khatri.
The 54th edition frames the shift as a response to thinner crypto-native deal flow at the early stage. Funds with deep crypto reserves are deploying selectively across the broader technology stack, with AI and infrastructure drawing particular attention.
Why it matters
Crypto-native VCs have historically been ring-fenced investors, deploying into token launches, Layer 1s, and DeFi protocols. A meaningful rotation into AI and adjacent tech signals two things at once: the maturation of the crypto venture class, and the gravitational pull of AI deal flow on every generalist fund in the market.
Market impact
For portfolio construction, the move blurs the line between crypto funds and generalist tech investors. Limited partners watching capital allocation will see more hybrid theses, and exits in AI infrastructure may now flow through vehicles originally marketed as crypto-only.
Frequently asked questions
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What is The Funding newsletter?
The Funding is a fortnightly newsletter by The Block, written by Yogita Khatri, its longest-serving editorial member. It tracks venture activity across crypto and adjacent sectors.
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Why are crypto VCs investing beyond crypto?
Early-stage crypto-native deal flow has thinned, prompting funds with deep crypto reserves to deploy selectively into AI and broader technology infrastructure instead.
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Which sectors are crypto VCs moving into?
AI and adjacent technology infrastructure are drawing particular attention from crypto-native funds, according to The Funding's 54th edition.
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How does this affect limited partners in crypto funds?
Limited partners will see more hybrid investment theses, with exits potentially flowing from AI infrastructure through vehicles originally marketed as crypto-only funds.
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Does this signal a broader shift in crypto venture strategy?
The move blurs the line between crypto venture and generalist tech investing, suggesting crypto VCs are maturing into a more flexible allocation class.
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