Digital asset management firm Parafi Capital has raised $120 million from investors including Theta Capital Management and Accolade Partners, marking strong growth in crypto funding.

This capital raise comes after crypto-focused venture capital firm Lemniscap raised $70 million. Crypto firms are improving market sentiment by raising capital as cryptocurrency prices recover in 2024.

According to the Bloomberg report, the capital ParaFi has raised will be used in part to acquire general partner (GP) interests in other crypto funds. The company plans to create a portfolio of such shares in the next three to five years. 2

Founded in 018, Parafi Capital has invested in various digital asset companies. In early August, digital asset infrastructure provider Parfin closed a $10 million Series A financing round led by ParaFi Capital.

Explaining their strategy, ParaFi founder Ben Forman told Bloomberg:

“We have watched the crypto fund landscape closely over the years. We believe there will be more crypto funds as institutional capital enters this space. It is important to specialize and focus on areas such as geography, theme or investment type.”

Many crypto companies and venture capitalists are either already raising capital or in the process of raising new funds. VC firm Lemniscap’s $70 million fund will be spent on a variety of blockchain-based businesses, including zero-knowledge infrastructure, consumer applications, emerging Bitcoin ecosystems, security and decentralized physical infrastructure networks.

The new fund is also backed by Accolade Partners, a fund that invests in early-stage startups in the blockchain industry.

Wireless internet service provider Andrena has raised $18 million in funding led by Dragonfly and joined by CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, ParaFi and other investors. This investment will be used to launch Dawn, a decentralized autonomous wireless network.

Open source block explorer Blockscout has closed a $3 million seed round led by 1kx. This funding will improve the startup’s product range and user experience and expand its traveler service.

Game developer Cartridge has closed a $7.5 million Series A funding round led by Bitkraft Ventures to support Dojo 1.0, an open-source framework and toolset for developers working on blockchain-based games.