Multicoin Capital is leaning into its home field. General partner and co-head of venture Spencer Applebaum put it simply: "We believe we have an edge in crypto, and we want to stay true to it." He joined the Austin firm in 2018 and says Multicoin is resisting the push to back standalone AI companies.
He argues the crypto and AI mashup is often backwards. "For the most part, people are in search of a problem that doesn't exist at the intersection of crypto and AI," he said. "A lot of investors are trying to force it." Having never made a pure-play AI bet, Applebaum said Multicoin would not carry over the advantages it has built in crypto, where its track record and relationships often put it near the front of the line with founders.
Multicoin is moving more slowly with its 2022 venture fund after valuations fell following the collapse of FTX that year. "Throughout 2023, we started seeing seed rounds of roughly $3 million at $30 million post-money valuations," Applebaum said. With a $422 million fund, he added, that naturally stretches deployment.
Meanwhile, rivals are widening their scope as fundraising for crypto vehicles tightens. Paradigm, together with Framework Ventures Management and Haun Ventures, has moved beyond digital assets; this year, Paradigm raised $1.2 billion for a fund that includes AI and robotics. Galaxy Research reports that roughly $3.9 billion flowed from investors into five freshly launched crypto-focused venture vehicles during the second quarter, marking the lowest count of new funds since Q4 2019. A maturing crypto market with fewer standout opportunities has also nudged some capital elsewhere.
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Galaxy Research estimates crypto startup financing is keeping pace with last year, at roughly $10 billion over the first half, versus $20 billion for all of 2025. But raising new crypto funds is tougher as attention shifts. Crunchbase reports AI-focused companies captured roughly two-thirds of startup funding in the US and Canada during the third quarter.
That emphasis extends to the firm's hedge fund, which purchases cryptocurrencies outright. Applebaum said its largest position is HYPE, the token tied to decentralized derivatives exchange Hyperliquid. He said Multicoin acquired the tokens via open-market purchases, and it generally keeps publicly listed positions for years, not days or weeks. He would not reveal how large the position is.
The bottom line: Multicoin is betting specialization beats trend hopping, pacing a $422 million fund as deal sizes and valuations reset post-2022. For your portfolio, track where crypto-native capital concentrates and how deployment slows while AI attracts the marginal dollar.
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