Multicoin Capital is resisting the venture capital industry's shift toward artificial intelligence, choosing instead to remain focused on digital assets. The Austin-based firm, which manages approximately $2.7 billion, has no plans to expand its investment mandate to include standalone AI companies, according to Spencer Applebaum, general partner and co-head of venture.
"We believe we have an edge in crypto, and we want to stay true to it," Applebaum said in remarks to Bloomberg.
This strategy sets Multicoin apart from competing crypto venture firms including Paradigm, Framework Ventures, and Haun Ventures, which have broadened their investment mandates to include artificial intelligence and robotics alongside digital assets. Paradigm, for example, raised $1.2 billion this year for a fund encompassing AI and robotics alongside crypto.
The divergence reflects broader market dynamics. During the third quarter, AI companies captured roughly two-thirds of all startup capital invested in the U.S. and Canada, according to Crunchbase data.
Challenging Environment for Crypto Venture Investing
Multicoin's commitment to its core strategy comes as the crypto venture market faces headwinds. Galaxy Research data showed approximately $10 billion was invested in crypto startups during the first half of 2026, maintaining a pace similar to the previous year. However, fundraising for new crypto-focused venture funds has become significantly more difficult.
In the second quarter, investors committed roughly $3.9 billion across just five new crypto-focused venture funds—the fewest launches since late 2019. Multicoin itself is taking longer to deploy a $422 million venture fund it raised in 2022.
Applebaum attributed the slower deployment to lower valuations that followed FTX's collapse. Seed rounds around 2023 were typically valued at approximately $3 million at $30 million post-money valuations, meaning larger funds naturally required more time to fully invest their capital.
HYPE as the Largest Hedge Fund Position
Multicoin's commitment to digital assets extends beyond venture investing. Applebaum stated that Hyperliquid's HYPE token is currently the largest position in Multicoin's hedge fund. The firm accumulated the tokens on the open market and typically maintains public investments for extended periods rather than engaging in short-term trading.
The investment strategy reflects Multicoin's thesis that the best crypto opportunities will reach investors with deep sector relationships and expertise first, rather than those simply allocating capital to whatever market segment currently attracts the most funding.
