Polychain Capital was started in 2016. It is a crypto-oriented hedge fund, but that doesn’t mean that it can’t attract sizeable cash injections from venture funds that hail from outside the crypto sphere. As 2014 waned, it had $591.5 million in assets under management, but by the close of 2017 this had grown to a significantly more impressive $1 billion. That said, Crypto Fund Research reveals that by the middle of 2019, the AUM figure had dropped back to $967 million.
Like many other big funds, Polychain Capital puts its money into start-ups in the blockchain and crypto world. Crunchbase says that so far Polychain Capita has put money into 37 of them through its venture capital fund, ploughing money into names like Coinbase, Kik, Celo, and dYdX. In 2018 it raised an impressive $175 million for this fund.
It’s interesting that Polychain Capital has picked up investment for its blockchain and start-up capital funds from big venture capital players that are well-known to the traditional financial world. Sequoia Capital, Andreessen Horowitz and Union Square Ventures all contributed to a $200 million funding round in 2017 and Olaf Carlson-Wee, the founder of Polychain capital probably can’t believe his luck.