Following the footsteps of major investment funds can reveal which projects are truly worth watching — and give you a head start on early opportunities. But how do you verify an investment fund and understand a project’s fundraising process?

Let’s break it down in the simplest, most practical way.

Why Learning to Verify Investment Funds and Fundraising Processes Matters in Crypto

In the ever-shifting tides of the crypto market, the ability to identify early gems often lies in recognizing where smart money is going. Projects backed by reputable investment funds tend to carry not just capital, but credibility, clarity of vision, and a foundation strong enough to weather the chaos.

But why is it so crucial to learn how to verify these funds and understand a project’s fundraising strategy? Let’s break it down.

Catching Trends Before They Go Mainstream

From late 2019 to 2021, prominent investment firms like a16z, Paradigm, and Polychain Capital poured capital into emerging DeFi protocols, effectively igniting the “DeFi Summer” boom. These weren’t passive investors—they actively advised, supplied liquidity, and opened doors.

• Compound: a16z led a $25M Series A round in Nov 2019, joined by Paradigm and Polychain. Within five months (Nov 2020 to Mar 2021), COMP surged over 10x.

• Uniswap: Backed early by a16z with both capital and strategic support. After UNI launched, it went from $3 to $42 in just two months.

• MakerDAO: a16z and Polychain invested in consecutive rounds (2018–2019), helping MKR jump from $500 to nearly $6,000.

The pattern is clear: when several top-tier VCs enter a niche, it often signals the next breakout sector. But there’s nuance—you must still verify whether the fund is identifying potential early, or just chasing fleeting trends.

Reducing Risk in a High-Stakes Market

Crypto is fertile ground for innovation—but also for scams, rug pulls, and ghost projects that vanish without a trace.

Projects backed by funds like a16z, Sequoia Capital, or Paradigm go through intense due diligence. These funds typically back ventures with:

• A reputable founding team

• Truly innovative technology or products

• A transparent roadmap and capital plan

Legit projects are usually open about how much they’ve raised, from whom, and how funds will be used. In contrast, sketchy projects hide or fabricate fundraising info—raising red flags.

Example: Squid Game (SQUID) launched in 2021 with no real backers, only hype. It manipulated trading volumes and market cap to lure investors before executing a rug pull. Within a single candle, its market cap collapsed to zero.

Still, not every great project needs VC backing to shine.

Take Jupiter and Hyperliquid — both skipped traditional VC funding yet delivered massive airdrops and retained strong community support. Some of the brightest stars are self-lit.

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Evaluating a Fund’s True Commitment

Not every fund that invests is in it for the long haul. Some play the quick game—buy low, dump high. That’s why knowing who is behind the check matters just as much as the check itself.

Look for names with track records:
Pantera Capital, Andreessen Horowitz (a16z), Polychain Capital — these firms are known for patient capital and deep involvement.

On the other hand, be wary of funds with murky pasts or scattergun strategies.

Case Study: DWF Labs

Though often active in market-making, DWF Labs has drawn criticism for:

• Short-term, high-volume investing: Backed 90+ projects, often trending narratives like memecoins or AI, with little long-term support.

• Controversial model: Buys discounted tokens OTC, provides liquidity, but operates more like a price controller than a venture builder. CoinDesk (Apr 14, 2023) questioned if this model verges on pump-and-dump.

• Questionable leadership: Founder Andrei Grachev previously led Huobi Russia, a now-defunct branch of Huobi Global. Allegations of non-transparent dealings and proximity to illicit crypto flows remain.

A few examples:

• Tomi: Dropped from $7 to $0.0026 after the team minted a billion tokens citing “team budget,” then dumped them on CEXs.

• CryptoZoo: Marketed heavily by KOL Logan Paul, raised millions, promised a game… delivered none. ZOO token and NFTs plummeted into obscurity.

Tools to Verify Investment Funds and Fundraising in Crypto

In a space that moves at the speed of light, having the right tools in your arsenal is like having night vision in a pitch-black jungle. There’s chaos out there—projects rise and fall like waves in a storm—but with the right compass, you won’t just survive. You’ll navigate.

Here are some of the most reliable platforms to verify fundraising and track investment funds:

• Crypto Fundraising: Aggregates fundraising data—how much was raised, when, and which funds joined the ride.

• Cryptorank: Offers project rankings based on raised capital, investor participation, and ROI. The clean UI makes comparisons effortless, perfect for both rookies and veterans.

• Chainbroker: Tracks portfolio performance of VCs and investor behavior.

• RootData: A deep dive tool—tokenomics, unlock schedules, and investor lists, all in one dashboard.

• Crunchbase: While not crypto-native, it shines when you want background on startup teams and historical funding strategies.

After experimenting with them all, Cryptorank stood out as the best starting point for beginners: visual, intuitive, and widely trusted.

How to Verify a Project’s Fundraising on Cryptorank

Step 1

Go to Cryptorank.io, type in the project’s name, and click the correct result.

Step 2

Click the “Fundraising” tab. You’ll get access to:

• Total capital raised
• Details of each funding round (Seed, Strategic, Series A, B…)
• Names of the participating investment funds

Example: Uniswap’s Fundraising Journey

Here’s how Uniswap’s fundraising rounds played out, and what they reveal:

• Strategic Round (Date undisclosed)
  Raised: $11M via private token sale at $0.0786/token
  ROI: Over 6x at current price, up to 57x at ATH

• Series A – Aug 7, 2020
  Raised: $11M
  Led by a16z, with Paradigm, Variant, and SV Angel participating
  (Note: Both a16z and Paradigm are Tier 1 giants)

• Series B – Oct 13, 2022
  Raised: $165M
  Led by Polychain Capital, joined again by a16z and Paradigm

You see the pattern? Big funds don’t just drop in and disappear. They return. They double down.

Heads-Up: Not Every Project Lists Fundraising Data

If a project doesn’t show a Fundraising section, it usually means:

• They haven’t raised from VCs

• Or the funding details haven’t been disclosed

In either case, cross-check on platforms like Crypto Fundraising, Chainbroker, or RootData. Sometimes one platform catches what another misses.

Tips for Spotting Strong Projects Based on Investment

Here’s what seasoned gem hunters look for:

• Projects with Tier 1 backers
  Names like a16z, Sequoia, Paradigm, and Polychain act like a stamp of legitimacy.

• Consistency across rounds
  If a big fund backs a project in multiple rounds, that’s a signal of long-term belief—not just opportunism.

• Follow the “conviction capital”
  Some funds spread cash thin, but conviction shows in size and frequency of investment. That’s your north star.

Step 3

Use the “Extended Info” Option

Cryptorank often provides a tiered breakdown of investors—Tier 1, Tier 2, etc.—based on credibility, success rate, and past ROI. Click “Extended” (when available) to quickly identify whether a project is backed by top-tier capital.

Step 4

In some cases, there won’t be a breakdown.

You’ll need to manually click each fund to check their history and ranking. Yes, it’s tedious. But it’s worth it. Because in this space, one extra click could mean the difference between buying the top—or catching the bottom before the world notices.

How to Find High-Funded Projects in Specific Sectors

If you’re exploring a specific sector in crypto like Layer 1, GameFi, or DeFi and want to discover which projects have raised significant capital, follow these steps:

Step 1: Visit the Fundraising Rounds section on CryptoRank

Click on the Filters button to begin your search.

Step 2: Set up filters to narrow your results:

• Under Raise, set the minimum and maximum fundraising amount that you’re interested in.

• Under Category, type in the specific niche you want to explore (e.g., DeFi, GameFi, etc.)

One recent case is Ethena, which raised $100M in its latest Private Token Sale round, hosted by major CEXs like Binance, Bitget, and Gate.io. Backers include heavyweights such as Polychain Capital, Pantera Capital, and DragonFly Capital.

How to Find Projects Backed by Top-Tier Investment Funds

Part 1: Find Reputable Investment Funds

Step 1: Go to the Funds page on CryptoRank

You’ll see a list of investment funds categorized by tiers, from lower-tier to Tier 1.

• If you already have a fund in mind, simply enter the name in the search bar to view its portfolio and performance.

• If you’re new, start by exploring Tier 1 funds with high ROI. These are usually more reliable and can give you an idea of which projects they’re betting on.

You can also filter funds based on:

• Longevity: How long has the fund been active? Those with a track record of 3–5+ years are generally more credible, especially if they’ve survived through multiple downtrends.

• Sector focus: For instance, Animoca Brands is known for GameFi investments, while a16z tends to back DeFi and AI-related ventures.

• Portfolio diversity: Does the fund invest across various verticals or concentrate only on one type of asset (e.g., memecoins)? A diversified fund usually carries less risk.

Step 2: Once you select a fund, go to its Overview section

There, you’ll find key insights like:

• Return on Investment (ROI)

• Preferred investment sectors

• Total number of investments

• Average capital invested per project

• And much more

Example: a16z (Andreessen Horowitz) is one of the most influential crypto funds. They typically invest between $3M–$10M per round, focusing on Developer Tools, EVM infrastructure, Layer 1/2, and NFTs. With over 172 investments and an ROI of up to 400x, they’ve backed major projects like Uniswap and Compound.

Part 2: Find Projects Backed by Specific Investment Funds

Step 1: On a fund’s page, head to the Funding Rounds tab

You can search for specific projects that the fund has invested in.

Step 2: Use filters to refine your search

You can narrow it down by:

• Investment sector (e.g., DeFi, AI, GameFi)

• Co-investors (other funds involved)

• Amount invested in a project

• Valuation of the project

Example:

Let’s say you want to see which DeFi projects a16z has co-invested in with Paradigm, and where the amount invested was at least $20M.

After setting those filters, only Uniswap and Compound match all the criteria.

Based on these insights, you can tailor your research depending on your investment thesis and risk appetite. However, remember this: institutional funds have more access to insider info, better risk management, and often spread capital across many projects – including both top-tier and high-risk plays.

So, use fund activity as a valuable signal, but don’t assume every project they back is guaranteed to succeed.

How to Find Newly Funded Projects

To stay updated with the latest fundraising activity, just visit the Funding Rounds page on CryptoRank. Projects are listed in reverse chronological order, so you can easily track what’s fresh.

Example (as of April 10, 2025):

• Meanwhile: Raised $40M from Framework Ventures, Fulgur Ventures, and Wences Casares

• Towns: Secured $10M from a16z, Coinbase, and Benchmark

• Gunz: Backed by 1kx in a strategic round (exact amount not disclosed)

 

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By monitoring this section regularly, you’ll be among the first to spot emerging projects and ride early momentum — before they hit the mainstream radar.

Level Up Your Crypto Game with KEYRING PRO

You’ve learned how to trace the trail of smart money, decode the dance of fundraising rounds, and dissect the intentions of crypto VCs. But here’s the final piece of the puzzle—how you interact with these insights in real-time matters just as much as knowing them.

That’s where KEYRING PRO Wallet steps in—not just as a wallet, but as a bridge between you and the evolving landscape of crypto intelligence.

While most wallets stop at storing assets, KEYRING PRO goes further. It’s designed for those who don’t just hold tokens—but track narratives, monitor trends, and move in sync with the market pulse.

• Multi-chain by default, so you can pivot as fast as the market does
• Built-in support for transaction data and contract interactions, helping you verify fundraising flows
• A secure, portable basecamp for researching, investing, and executing—all in one

In a world where spotting a well-backed project early can change your fate, the right tools aren’t optional—they’re essential.