Castle Island Ventures Confirms $250M Fund Targeting Web3 Startups

The third fund from Castle Island Ventures is focused on blockchain and cryptocurrency startups

article-image

Castle Island Venture’s Nic Carter | Blockworks exclusive Art by Axel Rangel

share

key takeaways

  • Castle Island Venture Fund III will focus on financing startups building monetary networks, internet infrastructure and financial services
  • The $250 million fund follows its second fund focused exclusively on public blockchains

Venture capital firm Castle Island Ventures has announced a $250 million raise for its latest crypto fund focused on startups building out monetary networks, internet infrastructure and financial services.

Blockworks previously reported on the imminent launch of the fund, dubbed Castle Island Ventures III.

According to a company blog post on Wednesday, Castle Island Ventures said it believed the industry was in its “early days” of a monetary transition toward a rules-based monetary order and was seeking to capitalize on the movement.

“The new fund will support our mission to partner with visionary entrepreneurs building transformative companies powered by public blockchains,” company partner Matt Walsh said in the post.

Castle Island’s portfolio includes a number of well-known crypto startups and ventures, including BlockFi, Bitwise, CoinMetrics, Mash, MoonPay and River Financial.

Walsh further said his company intended to invest in firms it believed could affect change in the financial services sector whilst leveraging Web3 protocols to shake up legacy financial services firms and their inability to evolve.

“In parallel to the monetary and financial transformation that is underway, ‘Web3’ and new internet architectures propose digital property rights and enable new protocols and businesses that seek to disrupt and disempower online data and tech monopolies,” Walsh said.

The Boston-based company also announced Ria Bhutoria — formerly director of research at Fidelity — as general partner, joining the likes of Nic Carter, Walsh and Sean Judge.

Its latest raise follows its previous $50 million fund last year, focused exclusively on public blockchains. The company’s first fund debuted back in 2018 and was valued at $30 million.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Pipe Network is a decentralized content delivery network (dCDN) that replaces the sparse, capital intensive data center footprint of traditional CDNs with a permissionless mesh of independent node operators. By orchestrating under-utilized resources that already exist at the edge, rather than purchasing or leasing thousands of servers, Pipe slashes capital intensity while letting supply expand autonomously in the places where bandwidth is scarcest and most expensive.

article-image

Fiscal dominance isn’t about interest rates and it isn’t about Trump, either

article-image

Firestarter Storage brings decentralized storage and delivery to Solana

article-image

After lengthy closing arguments on Wednesday, the case is now in the hands of 12 jurors

article-image

Analysts cite weak trading volume and regulatory progress as factors

article-image

Builders weigh in on Ethereum’s first decade and the decisions that will define its next one

article-image

Closing arguments set to kick off Wednesday after Tuesday’s testimony from two expert witnesses and an a16z partner