--- url: 'https://qubit.capital/blog/blockchain-web3-venture-funds' title: Top Blockchain VC Funds Backing Web3 Startups author: name: Sahil Agrawal url: 'https://qubit.capital/blog/author/sahil' date: '2026-05-30T12:10:00+05:30' modified: '2026-05-30T15:55:32+05:30' type: post categories: - Industry-Specific Insights image: 'https://qubit.capital/wp-content/uploads/2026/05/blockchain-web3-venture-funds-1.webp' published: true --- # Top Blockchain VC Funds Backing Web3 Startups The default way founders pick a backer is by brand name and fund size. That logic worked in the last cycle. It does not hold now. Capital that understands tokens, liquidity, and on-chain markets behaves differently. Choosing on reputation alone leaves real strategic value unclaimed. The right backer shapes your token, not just your cap table. This article maps which blockchain web3 venture funds actually back early token projects and how each one operates. You are likely raising a seed or Series A round right now. Maybe you hold a working protocol and a token model you are ready to test. Your next backer should match that exact moment. If you want a fast read, start with the comparison table. If you are pre-token, jump to item three. If you are scaling a live protocol, the later entries fit your stage best. Table of Contents - [How We Chose These Funds](#how-we-chose-these-funds) - [Top 9 Blockchain Web3 Venture Funds in 2026](#top-9-blockchain-web3-venture-funds-in-2026) [1. Coinbase Ventures](#1-coinbase-ventures) - [2. DWF Labs](#2-dwf-labs) - [3. Blockchain Founders Fund](#3-blockchain-founders-fund) - [4. Founders Fund](#4-founders-fund) - [5. NFX](#5-nfx) - [6. Andreessen Horowitz](#6-andreessen-horowitz) - [7. Sequoia Capital](#7-sequoia-capital) - [8. Haun Ventures](#8-haun-ventures) - [9. Union Square Ventures](#9-union-square-ventures) - [Blockchain Web3 Venture Funds Compared](#blockchain-web3-venture-funds-compared) - [Compliance Rules for Venture Capital Funds](#compliance-rules-for-venture-capital-funds) - [Where Web3 Venture Capital is Heading](#where-web3-venture-capital-is-heading) - [Conclusion](#conclusion) - [Key Takeaways](#key-takeaways) ## How We Chose These Funds This list tracks the funds currently writing blockchain and web3 venture checks in 2026. We evaluated each by partner-level deal attribution, recent portfolio activity, and verified investment cadence. For founders, the signal that matters is not reputation. It is whether a partner still deploys real capital into your category this year. We kept the bar high and the selection deliberately narrow. Each fund here clears every test below. - Wrote at least one blockchain or web3 equity check between January 2024 and April 2026. - Has a named partner currently leading new deals, not a historical brand running on past wins. - Invests actively in at least one of: infrastructure protocols, decentralized finance, or token-based network projects. - Shows observable process-timing data from at least one direct engagement or named co-investor account. This list omits funds that paused new blockchain deployment after 2024. It excludes generalist firms without a dedicated web3 partner on the deal team. It also leaves out crossover funds writing only late-stage checks above Series C. It is not designed for founders seeking grants, token-only raises, or non-equity capital. Brand alone never earned a place on this list. Founders who land in that excluded bucket are not out of options. Many protocol foundations run their own capital programs, and a closer look at [ecosystem grants from layer-1 protocols](https://qubit.capital/blog/blockchain-grants-ecosystem-funds) shows how they fund early builders through non-dilutive awards rather than equity checks, a path worth mapping before you chase venture money. Current as of May 2026, with each fund reviewed against its most recent disclosed deal activity and active partner roster. ## Top 9 Blockchain Web3 Venture Funds in 2026 These nine funds were selected on assets under management (AUM) scale, deployment velocity, and portfolio concentration. Web3 infrastructure and decentralized finance (DeFi) weigh heavily in the selection. Not every large fund belongs here. The ranking favors firms with active Web3 theses and seed-to-Series-A coverage. That is the profile that moves a blockchain founder’s raise forward. Because decentralized finance sits at the center of so many of these theses, the financing mechanics often differ from a standard equity round. The [defi funding models](https://qubit.capital/blog/defi-funding-models) that web3 startups lean on, from liquidity-based raises to token incentives and protocol-owned treasuries, frequently run alongside a traditional venture round rather than replacing it. ### 1. Coinbase Ventures Coinbase Ventures, the corporate venture arm of Coinbase, has backed web3 founders since its 2018 launch in San Francisco. It targets seed to Series A rounds in crypto infrastructure, decentralized finance (DeFi) protocols, developer tooling, and on-chain consumer apps globally. Typical checks run $250,000 to $2 million, with the firm following on selectively for its strongest performers. - **Who they back:** Seed and Series A founders in blockchain infrastructure, DeFi, or web3 tooling globally, with checks from $250,000 to $2 million. - **Their angle:** Unlike pure-financial venture capital firms, Coinbase Ventures invests to grow the web3 market its exchange business depends on. - **Recent activity:** In 2024, [Coinbase Ventures joined Wormhole’s $225 million fundraise](https://forklog.com/en/institutional-roundup-wormhole-raises-225-million-babylon-18-million/) and Privy’s $18 million Series A for wallet infrastructure. The firm has stayed active in Base-native funding through 2025, backing infrastructure and developer tooling teams. - **What they bring beyond capital:** Portfolio companies gain access to Coinbase’s user distribution, exchange listing consideration, and direct relationships with its engineering and product teams. - **Process and timeline:** Coinbase Ventures typically moves from first meeting to term sheet in two to four weeks for seed deals. The most reliable warm-intro route runs through existing portfolio founders or current Coinbase employees. - **When they’re the wrong fit:** If your product competes directly with Coinbase’s core exchange, custody, or wallet offerings, expect a pass regardless of traction. - **Check size and structure:** Checks run $250,000 to $2 million as passive minority stakes, no board seat taken, held three to seven years. ### 2. DWF Labs [DWF Labs](https://www.dwf-labs.com/) launched in 2022 in Singapore, pairing a global market-making desk with a multi-stage Web3 venture arm. Offices in Dubai and Zug extend the firm’s reach across three of the largest Web3 capital markets. The firm backs token-native founders from seed through late-stage in decentralized finance (DeFi), Layer 1/Layer 2 infrastructure, and gaming. Checks typically run from $1M to $50M, with structured instruments available for larger late-stage commitments. - **Who they back:** Web3 founders building token-native products in DeFi, gaming, or L1/L2 infrastructure at any stage, globally, raising from $1M to $50M. - **Their angle:** DWF pairs every check with in-house market-making, giving portfolio tokens active liquidity from launch rather than post-raise scrambling. It joined Plume Network’s real-world asset (RWA) platform raise in 2024. That same year, DWF backed MANTRA’s Layer 1 chain fundraise, another RWA-aligned commitment. - **What they bring beyond capital:** The in-house trading desk runs live token markets for portfolio companies, a support layer no pure-play VC can replicate. - **Process and timeline:** DWF typically moves from first meeting to term sheet within two to three weeks, faster than most institutional funds. Warm introductions through existing portfolio founders or market-making counterparts are the most reliable path in. - **When they’re the wrong fit:** Companies building equity-only SaaS with no token roadmap will find DWF’s market-making model entirely beside the point. - **Check size and structure:** Deals run $1M to $50M, mixing token warrants with equity, minority stakes only, held two to five years. ### 3. Blockchain Founders Fund Blockchain Founders Fund (BFF) launched in 2017 from Singapore and backs pre-seed and seed Web3 founders across three continents. Sector focus spans blockchain infrastructure, decentralized finance (DeFi), and tokenized-asset applications, with Asia-Pacific as the primary deal flow source. Check sizes run from low six figures at pre-seed through mid-six figures at seed for follow-on positions. - **Who they back:** Pre-seed and seed founders building blockchain-native products, typically pre-revenue, from DeFi to tokenized assets, with Asia-Pacific teams preferred. - **Their angle:** BFF enters before institutional consensus forms, writing the first institutional check and staying engaged through follow-on rounds. - **Recent activity:** BFF II closed in January 2022 and continued deploying through 2024 and into 2025. Portfolio additions in that window span DeFi infrastructure, tokenization platforms, and Web3 consumer applications across Southeast Asian markets. - **What they bring beyond capital:** The Singapore base opens regional government grant pathways and a token-launch network that Western-only funds rarely match. - **Process and timeline:** Diligence runs four to six weeks with a partner-level call scheduled in the first week. The strongest entry route is a warm intro from a regional accelerator, existing BFF portfolio founder, or Web3 conference organizer. - **When they’re the wrong fit:** If you have no blockchain-native product or are raising Series A and above, BFF will pass without a second meeting. - **Check size and structure:** BFF writes minority stakes from low to mid six figures, without board control, holding typically through Series A. ### 4. Founders Fund Peter Thiel, Ken Howery, and Luke Nosek founded [Founders Fund](https://foundersfund.com) in San Francisco in 2005 betting on hard technology. They invest from seed through late-stage growth, concentrated in artificial intelligence (AI), defense technology, biotech, and blockchain infrastructure. The firm writes fewer, larger checks than most funds, from single-digit millions at seed to over $100 million at growth. - **Who they back:** They back technical founders at seed through late-growth in the US, building in AI, defense technology, biotech, or blockchain infrastructure. - **Their angle:** Their differentiator is concentration in hard-tech categories most venture funds treat as too risky or too early to back. A lead position at that check size in logistics infrastructure shows the firm’s conviction-first model is active at scale. A concentrated AI martech position delivering that kind of multiple validates the firm’s thesis on founder bets in vertical AI. - **What they bring beyond capital:** Founder alumni from SpaceX, Palantir, Stripe, and Airbnb give portfolio companies a peer network no traditional fund can replicate. - **Process and timeline:** Diligence typically runs four to eight weeks, with principal partners engaged directly rather than delegated to associates. A warm introduction from a Founders Fund portfolio founder is the most reliable path to a first partner meeting. - **When they’re the wrong fit:** Founders Fund is the wrong choice for SaaS or software-only businesses without a hard-tech differentiation layer. - **Check size and structure:** Minority stakes, checks from single-digit millions at seed to over $100 million at growth, with a seven-to-ten-year hold horizon. ### 5. NFX Partners James Currier, Pete Flint, Gigi Levy-Weiss, and Morgan Beller built the firm on a network effects thesis. In their model, each new user makes the product harder to copy, creating compounding barriers over time. Blockchain protocols and token networks fit that model precisely, which grounds [NFX](https://www.nfx.com)‘s web3 conviction. The firm’s portfolio spans consumer apps, enterprise software, fintech, and crypto protocols. - **Who they back:** Seed and early-stage founders in blockchain and web3, primarily US-based, with network-effects products and checks from $500,000 to $5 million. - **Their angle:** NFX’s Network Effects Bible categorizes 13 defensibility types, giving portfolio founders a structured moat-building playbook most generalist funds lack. - ** That volume signals an active fund writing checks across categories, not a passive observer.** - **What they bring beyond capital:** The NFX operator network, follow-on to Series A, and cross-portfolio introductions give founders structural advantages passive checks cannot match. - **Process and timeline:** Diligence at NFX typically runs two to four weeks, with direct partner engagement rather than associate-filtered screening. The most effective warm-intro is a referral from an existing portfolio founder; LinkedIn cold messages rarely reach partners. - **When they’re the wrong fit:** If your blockchain project competes on margins and has no network or data effects moat, NFX will not engage. ### 6. Andreessen Horowitz [Andreessen Horowitz](https://a16z.com), known as a16z, was founded in 2009 and is headquartered in Menlo Park, California. The firm manages dedicated funds across crypto, bio, games, and fintech. Their a16z crypto vehicle backs blockchain and web3 companies from seed through late stage. That scale lets a16z lead your seed round and still write a growth check. Blockchain infrastructure, consumer protocols, and financial applications form the core of their crypto portfolio. - **Who they back:** Seed through Series C founders building crypto infrastructure or consumer protocols, primarily US-based or globally ambitious teams. - **Their angle:** a16z crypto runs a dedicated policy and regulatory team, giving founders legal strategy support that most funds cannot match. For founders, those two bets confirm a16z is still committing nine-figure checks to protocol infrastructure. - **What they bring beyond capital:** The firm’s 150-plus operating partners cover talent, go-to-market, and executive search, with follow-on capital reserved for breakout portfolio companies. - **Process and timeline:** Expect four to eight weeks from first meeting to term sheet, with multiple partner-level conversations before a decision. The fastest path in is a warm referral from a current a16z portfolio founder. - **When they’re the wrong fit:** If your company sits outside tech and crypto sectors, a16z is not the right lead for pricing your round. ### 7. Sequoia Capital [Sequoia Capital](https://www.sequoiacap.com) was founded in 1972 and is headquartered in Menlo Park, California, on Sand Hill Road. Their sector concentration spans enterprise software, fintech, and consumer, with crypto and web3 an established focus since 2021. - **Who they back:** Seed to growth-stage founders in technology, fintech, and crypto with global-scale ambition and a convincing path to category leadership. - **Their angle:** Sequoia pairs a dedicated crypto book with fifty years of founder network depth that virtually no peer institution can replicate. - **Recent activity:** In 2026, Sequoia co-invested in Hypershell’s [$50 million](https://tracxn.com/d/companies/hypershell/__la0umZkv3_hto9RkluP-3GXEykWzEAqK7cJCr8Wz5Qg) Series B+ alongside IDG Capital. They also backed Turnkey, a crypto security infrastructure firm, in a $12 million raise earlier that year. - **What they bring beyond capital:** Their Arc accelerator, sector-focused operating partners, and multi-fund follow-on reserves distinguish their offer from a standard single-check relationship. - **Process and timeline:** Due diligence typically spans six to ten weeks with a managing partner leading from week one. A warm introduction through an existing portfolio founder is reliably the fastest path to a first meeting. - **When they’re the wrong fit:** If your company is unlikely to reach billion-dollar scale within a decade, Sequoia will not be the right partner. ### 8. Haun Ventures In 2022, Katie Haun departed a16z Crypto to found Haun Ventures, a dedicated web3 fund based in Palo Alto, California. The firm backs companies from seed through growth, concentrating on decentralized protocols, consumer crypto applications, and web3 developer infrastructure. Typical seed checks average near $11 million, marking a commitment to early conviction over later-stage safety-net positioning. - **Who they back:** Founders at seed through growth building decentralized protocols, consumer crypto, or web3 developer infrastructure, from pre-product through early revenue. - **Their angle:** Haun’s DOJ prosecutorial background and former a16z Crypto role give the firm regulatory credibility most crypto VCs cannot offer. That commitment to crypto-adjacent payments shows the firm building exposure beyond pure-protocol bets. The fund closed 13 first-round deals in 2024 and 7 in 2025, logging consistent deployment across the cycle. - **What they bring beyond capital:** Haun brings policy network access, regulatory strategy, and senior operator intros through Katie Haun’s prosecutorial and a16z career history. - **Process and timeline:** Seed diligence typically runs four to eight weeks, with partner-level engagement from the first meeting rather than back-end gatekeeping. Warm intros from portfolio founders or the firm’s policy network are the most reliable path to a first call. - **When they’re the wrong fit:** Skip Haun if your startup operates outside crypto or needs hands-on technical partnership over regulatory guidance and network support. ### 9. Union Square Ventures [Union Square Ventures](https://www.usv.com) (USV) opened in 2003, founded by Fred Wilson and Brad Burnham out of New York City. The firm runs a focused early-stage mandate at seed and Series A, with networked markets as the central investment thesis. Crypto entered the portfolio in 2012 with Coinbase, making USV one of the earliest institutional backers in the sector. USV keeps its portfolio intentionally small so every partner stays close to every company. - **Who they back:** Seed to Series A founders in crypto, fintech, or media at pre-revenue to $2M ARR, raising $2M to $15M. - **Their angle:** USV applies one filter to every deal: does every additional user make the product measurably better for all existing users. - **Recent activity:** USV closed its 2022 Opportunity fund at $175M to extend positions in top portfolio companies; backed Celo’s 2023 transition to an Ethereum layer-2; continued follow-on support for Dapper Labs through 2024 as the sports digital collectibles platform expanded. - **What they bring beyond capital:** Fred Wilson’s 20-year New York network gives founders introductions to institutional co-investors, major crypto exchanges, and regulatory advisors. - **Process and timeline:** Diligence typically runs four to six weeks, with partners personally engaged at every stage. The highest-conversion path is a warm introduction from an existing USV portfolio founder. - **When they’re the wrong fit:** If your model lacks network effects or your raise exceeds $20M at Series A, USV will pass. For founders raising [venture capital](https://qubit.capital/blog/venture-capital/) in 2026, the practical takeaway from these ten firms is direct and worth absorbing. Lead your pitch with traction, hard on-chain metrics, and a clear path to real users before any token narrative. Match your story to each fund thesis, because these investors back infrastructure, not speculation, almost without any single exception. We firmly believe founders who show working product, not bold promises, will command the strongest terms and cleanest rounds. ## Blockchain Web3 Venture Funds Compared These blockchain web3 venture funds range from pre-seed specialists writing checks under $500K to growth-stage firms deploying above $50M, with sector concentrations running from pure crypto-native infrastructure to broad tech with an active web3 thesis, so matching your stage and sector to each fund’s mandate matters as much as the brand name on the term sheet. Stage is only half the matching problem; capital structure is the other half. As you size each fund against your raise, weighing [debt, equity and token-based financing options](https://qubit.capital/blog/blockchain-financing-options) clarifies how blockchain teams blend convertible instruments, token warrants, and venture debt to fund growth without overdiluting early holders. | Item | Best For | Check Size / Pricing | Stage Focus | Sector Concentration | | --- | --- | --- | --- | --- | | Paradigm | Crypto-native protocol and infrastructure founders | $1M to $100M+ | Seed to growth | DeFi, crypto exchanges, protocol infrastructure | | Coinbase Ventures | Projects building within or alongside the Coinbase product suite | $250K to $10M | Seed to Series A | Crypto infrastructure, wallets, developer tooling, DeFi | | DWF Labs | Token-based projects needing both capital and market liquidity | $1M to $50M | Seed to growth | DeFi, GameFi, tokenized assets, market-making plays | | Blockchain Founders Fund | Pre-revenue blockchain founders at the earliest fundraising stage | $100K to $500K | Pre-seed to seed | Blockchain protocols, consumer web3 | | Founders Fund | Founders making concentrated, high-conviction bets on hard technology | $1M to $100M+ | Series A to growth | Deep tech, defense, biotech, Bitcoin-focused crypto | | NFX | Founders with network-effect-driven web3 or fintech business models | $500K to $3M | Seed to Series A | Consumer web3, fintech, marketplaces, network-effect businesses | | Andreessen Horowitz | Founders who need a dedicated crypto fund with full-lifecycle follow-on | $1M to $100M+ | Seed to growth | DeFi, web3 infrastructure, NFTs, crypto exchanges | | Sequoia Capital | Founders targeting global scale with defensible technology positions | $1M to $100M+ | Seed to growth | Broad tech including blockchain, crypto, and web3 applications | | Haun Ventures | Web3-native founders at seed or Series A needing crypto-specific support | $500K to $10M | Seed to Series A | DeFi, token projects, consumer crypto, web3 infrastructure | | Union Square Ventures | Protocol and marketplace founders with network-driven growth models | $250K to $5M | Seed to Series A | Web3 protocols, DeFi, digital marketplaces | ## Compliance Rules for Venture Capital Funds Two regulatory shifts are reordering how web3 funds screen and close deals. The Securities and Exchange Commission (SEC) tightened its digital asset securities framework. It applies the Howey test more consistently to token offerings, including private sales. Tokens classified as investment contracts now face registration requirements that reshape fund deal structures. Separately, the EU’s Markets in Crypto-Assets (MiCA) regulation entered full enforcement. Funds and portfolio companies must hold operating licenses before distributing tokens across EU member states. Financial Crimes Enforcement Network (FinCEN) also updated its anti-money laundering (AML) rules for digital asset funds. Fund managers handling crypto positions now face stricter know-your-customer (KYC) and transaction monitoring standards. For founders, these shifts have direct consequences for the 12-month fundraising plan. If the SEC classifies your token as a security, fund partners face new disclosure and custody obligations. Those obligations slow deal timelines and often affect how term sheets are structured. We see founders commissioning legal opinions on token classification as early as the pre-seed stage. That preparation keeps U.S. fund doors open and avoids costly surprises during diligence. Founders targeting EU-licensed funds must also resolve whether their token meets MiCA’s utility or e-money definitions. MiCA-licensed funds will make that question a threshold condition, not a side note. We also see funds asking for FinCEN AML policy readiness from portfolio companies at the term sheet stage. Building that documentation into your data room from day one reduces friction at close. That positions you as a founder who has done the legal groundwork, not one discovering it at diligence. A security classification does more than slow a single raise; it reshapes your entire compliance posture. Founders who plan ahead tend to clear diligence faster, and understanding [how blockchain startups overcome regulatory obstacles](https://qubit.capital/blog/blockchain-startups-overcome-regulatory-challenges) covers the token structuring, disclosure, and custody questions fund partners now raise before they sign. ## Where Web3 Venture Capital is Heading Web3 venture funds moved through a clear arc. In 2024, deal counts fell sharply and check sizes shrank. By 2025, dry powder started moving again, but on tighter terms. Milestone-based tranches, staged closings, and co-lead structures replaced the single large wire. We are now in a phase where capital is available. Deployment is more deliberate than at any prior point this cycle. We see two structural shifts that should shape how you plan your next 18 months. First, institutional limited partners (LPs) that sat out the downturn are now re-entering web3 funds. They are not silent capital. They are arriving with co-investment rights, quarterly reporting requirements, and sector mandates. That narrows where fund managers can write checks and compresses timelines when a deal fits the mandate. Second, regulated jurisdictions are starting to matter more than protocol hype. Markets with clear frameworks for digital asset issuance and custody are seeing faster deal closings. Founders who can demonstrate compliance readiness are shortening their fundraising cycles by months, not weeks. The signal to track over the next six months is large web3 fund closes. When several major funds close within a short window, deployment pressure builds quickly. That is when term sheets accelerate and founders gain more negotiating room. Regulatory decisions on digital asset classification in the US and EU are the second signal. A clear ruling either way forces LP capital to move or hold. That reshapes the active fund count within a quarter. Across the firms above, we now see a 2026 market that clearly rewards real conviction over short-term token hype. Every fund among these ten backs proven protocol-level infrastructure and real on-chain usage, not speculative promises or unbacked token vapor. We observe a consistent, deliberate tilt toward founders shipping real product, real revenue, and measurable on-chain network activity today. The signal across all of them is plain: serious institutional capital now follows working systems, not grand architectural visions alone. That flight to real usage is most visible in how decentralized finance capital now flows. Tracking how defi is revolutionizing blockchain funding reveals the shift from speculative token launches toward protocols with measurable on-chain revenue, the same conviction signal these ten funds reward when they write checks. This institutional re-entry mirrors a parallel shift on the corporate side. Strategic acquirers and TradFi balance sheets are writing checks too, and a look at [corporate blockchain investment partnerships](https://qubit.capital/blog/corporate-partnerships-blockchain-investors) shows how these backers bring distribution and regulatory cover that pure financial LPs cannot, usually at the price of tighter governance terms. ## Conclusion The ten funds share one trait: conviction in blockchain before it became consensus. The tiers separate on check size and stage appetite. Top-tier funds write large, lead rounds, and shape token economics. Mid-tier funds move earlier, take protocol risk, and back unproven teams. That gap defines where you fit. Eighteen months ago, founders chased any fund with crypto in its thesis. That era closed. Capital now concentrates around funds with infrastructure depth and regulatory patience. Weigh portfolio coherence over headline assets under management. A fund that survived the last cycle signals discipline you want beside you. Use this list as a shortlist, not a directory. Match your stage to each fund’s lead behavior. Early protocol teams target conviction-first backers. Later token launches need funds with exchange relationships and liquidity reach. Decide your fit before you pitch. Watch the next six months for funds raising dedicated stablecoin and tokenization vehicles. That capital signals where conviction is moving. For founders building a raise plan around these funds, [blockchain fundraising support](https://qubit.capital/industries/blockchain) can sharpen positioning before outreach begins. ## Key Takeaways - **Stage fit:** Most funds on this list lead Series A and beyond. Seed-stage founders should exhaust ecosystem grants before approaching them. - Match your raise size to a fund’s stated range before outreach. - **Token warrant structures:** Several funds here invest via token warrants, not pure equity. Know which instrument your round requires before the first call. - **Thesis depth:** Funds like Multicoin and Pantera hold narrow vertical theses. A broad web3 pitch rarely converts with these names. - **Geographic spread:** Asia-based funds hold a meaningful share of the top-tier list. US-only outreach leaves capital on the table. - **LP pressure:** Institutional limited partners (LPs) are pressing funds for regulatory clarity. Funds with clean legal positioning move faster in. - **Follow-on capacity:** Some funds cap web3 exposure within their overall portfolio. That limits how much they can write in later rounds.