Breed VC, managed by sole general partner Jed Breed, has secured $15 million for its second cryptocurrency vehicle to back new ventures at the inception, pre-seed, and seed phases.
Participants in Fund II comprise FalconX, Hutt Capital, and Arrington Capital, alongside Nic Carter from Castle Island Ventures, Rob Hadick of Dragonfly, and Jake Brukhman representing CoinFund. Breed noted to The Block that he initiated fundraising last year and completed the round earlier this year.
Breed explained that he purposefully kept the vehicle compact to prioritize investor returns ahead of management fees generated by a larger pool. He added that this restricted scale assists Breed VC in securing “high-conviction deal access to competitive Tier-1 rounds.”
Despite its modest size, the vehicle intends to deploy investments ranging from $250,000 to $750,000 per startup. Responding to inquiries about selecting that check size, Breed mentioned they grant the firm “real skin in the game.” Each allocation accounts for roughly 2% to 5% of the total fund, he remarked, enabling Breed VC to collaborate closely with entrepreneurs alongside lead backers.
This capital acquisition takes place during a difficult time for early-stage crypto funding. Smaller cryptocurrency fund managers have likewise encountered harder to raise money conditions. Conversely, several larger organizations have continued securing substantial pools. A16z crypto announced a $2.2 billion fifth fund during May, Haun Ventures announced $1 billion in new funds that same month, and Framework Ventures raised $400 million for its fourth fund in June.
Breed VC’s investments
Breed mentioned that Breed VC’s initial vehicle, established in 2023, is fully committed and has commenced distributing capital back to backers. He declined to reveal the exact capital volume of that fund. Its portfolio features Monad, Ethena, Exo Labs, Agora, MyPrize, and Nous Research.
Breed stated that the original fund ranks within the upper 10% of comparable 2023 venture vehicles according to Carta’s Q1 2026 benchmarks, though he refrained from sharing precise performance metrics.
Breed’s second vehicle has already backed Silicon Data, a provider of pricing and performance metrics for AI computing; 3Jane, an onchain lending network; M1X Global, which focuses on blockchain-driven sovereign debt; and USD.AI, a synthetic dollar protocol centered on financing AI infrastructure.
Breed pointed out that Fund II remains in the early phase of its deployment window and anticipates distributing it across the following three to four years. The vehicle will concentrate on backing decentralized enterprises, covering open financial infrastructure and decentralized artificial intelligence.
Prior to establishing Breed VC, Breed served as digital assets lead at Circle, where he contributed to the rollout of USDC, and later directed a crypto market-neutral fund within Accomplice VC. Operating out of Boston, Breed VC currently comprises Breed along with investment partner Nick Garcia. Breed noted that the company is actively recruiting, though he omitted specific details regarding the positions or headcounts.
Breed maintains an optimistic outlook regarding deployment within the current market environment. “Tourist capital and mercenary projects have washed out, entry valuations have rationalized, and the founders building today are in it for the long term and focused on real problems that need to be solved,” he expressed.
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Originally published at https://www.theblock.co/news/deals/2026-09-22-jed-breed-vc-second-crypto-fund-416075.
