Breed VC raises $15M for second early-stage crypto fund

Breed VC has raised $15 million for its second crypto venture fund, targeting startups at the earliest stages of development.

The fund will invest between $250,000 and $750,000 per company across day zero, pre seed and seed rounds. Backers include FalconX, Hutt Capital and Arrington Capital, along with investors including Nic Carter, Rob Hadick and Jake Brukhman.

Founder Jed Breed said the firm intentionally kept the fund small to prioritize investment returns and maintain access to competitive early stage rounds. Individual investments will represent roughly 2% to 5% of the fund.

Fund II has already backed Silicon Data, onchain lending platform 3Jane, blockchain based sovereign debt project M1X Global and AI infrastructure financing protocol USD.AI. Breed plans to deploy the fund over the next three to four years, with a focus on open financial infrastructure and decentralized AI.

The raise comes as smaller crypto venture firms face a more difficult fundraising environment. Breed previously described raising capital as one of the hardest parts of operating a crypto venture fund as limited partners become more selective following weaker returns from funds raised during the previous cycle.

Larger firms have continued attracting substantial capital, including Andreessen Horowitz, Haun Ventures and Framework Ventures, highlighting a widening gap between established managers and smaller funds competing for investor commitments.

Breed launched his first fund in 2023 with a focus on early stage decentralized startups. Its portfolio includes Monad, Ethena, Agora, Exo Labs, MyPrize and Nous Research. The fund is now fully deployed and has begun returning capital to investors.