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Digital asset management firm Parafi Capital has successfully raised $120 million from investors, including Theta Capital Management and Accolade Partners, signaling strong growth in crypto funding.&nbsp;
The capital raise follows Lemniscap — a crypto-focused venture capital firm —&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/lemniscap-secures-70-million-back-early-stage-web3-startups" rel="null" target="null" text="null">raising $70 million</a>&nbsp;to invest in startups.
<h2 id="strong-crypto-fundraising-gets-a-boost-as-market-sentiment-improves-strong">Crypto fundraising gets a boost as market sentiment improves&nbsp;</h2>
Crypto firms have been <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/vc-roundup-crypto-fundraising-grows-investors-more-wary" rel="null" target="null" text="null">raising capital in 2024</a> as cryptocurrency prices recover, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/btc-price-11x-sp-500-bitcoin-rolling-over-analyst" rel="" target="_self" text="null">improving overall market sentiment</a>.
<a data-ct-non-breakable="null" href="https://www.bloomberg.com/news/articles/2024-08-28/parafi-capital-raises-120-million-to-buy-stakes-in-other-crypto-funds?sref=IIP4JEyu" rel="nofollow noopener" target="_blank" text="null">According</a> to a Bloomberg report, ParaFi’s fundraise will partly be used to acquire general-partner (GP) stakes in other crypto funds. The company plans to put together a portfolio of as many as 50 such stakes over the next three to five years.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mastercard-blockchain-payments-startup-program" rel="null" target="null" text="null">Mastercard launches ‘next generation’ of blockchain payments startup program</a>
Founded in 2018, Parafi Capital has invested in various digital asset companies. Earlier in August, Parfin — a digital asset infrastructure provider — <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/vc-roundup-crypto-fundraising-grows-investors-more-wary" rel="" target="_self" text="null">announced the completion</a> of a $10 million Series A funding round led by ParaFi Capital.
Explaining its strategy, Ben Forman, founder of ParaFi, told Bloomberg:
<blockquote>
 “We’ve watched the crypto-fund landscape evolve closely over the years. We believe there will be many more crypto funds as institutional capital enters this space. It’s important to have specialization and focus, whether it’s across geography, theme or type of investment.”
</blockquote>
<h2 id="strong-crypto-firms-vcs-line-up-for-capital-boost-strong">Crypto firms, VCs line up for capital boost</h2>
Several crypto companies and venture capitalists (VCs) are either already raising capital or are in the process of raising new funds. VC firm Lemniscap’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/lemniscap-secures-70-million-back-early-stage-web3-startups" rel="null" target="null" text="null">$70 million fundraise</a> will be spent on a range of blockchain-based businesses, including zero-knowledge infrastructure, consumer applications, emerging Bitcoin ecosystems, security and decentralized physical infrastructure networks.&nbsp;
The new fund is also backed by Accolade Partners, a fund of funds that targets early-stage ventures in the blockchain industry.
Wireless internet service provider Andrena secured $18 million in funding to launch Dawn, a decentralized autonomous wireless network. The investment was led by Dragonfly, with participation from CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, ParaFi and other investors.&nbsp; 
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 <img alt="Parafi Capital’s $120M fundraise signals renewed growth for crypto funds" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919d4a-df8d-7bda-9091-b529645d9496">
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 Source: <a data-ct-non-breakable="null" href="https://twitter.com/dawninternet/status/1821155421006307342" rel="null" target="null" text="null">DAWN</a>
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Open-source block explorer Blockscout has closed a $3 million seed round led by 1kx. The funding will improve the startup’s product suite and user experience and expand its explorer-as-a-service offering.
Game developer Cartridge secured $7.5 million in a Series A funding round led by Bitkraft Ventures to support the recently launched Dojo 1.0, an open-source framework and toolset for developers working on blockchain-based games.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ai-more-power-hungry-bitcoin-profits-pose-risks-bitcoin-miners/" rel="null" target="null" text="null">AI may already use more power than Bitcoin — and it threatens Bitcoin mining</a>

Parafi Capital’s $120M fundraise signals renewed growth for crypto funds

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