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Coinbase’s venture arm to boost earnings

written by Bella Palmer
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Coinbase Ventures has invested in more early-stage crypto and blockchain startups than any other crypto venture capital

Coinbase’s VC arm has been investing in more than 500 startups throughout the past seven years. Now some of those ventures are poised to pay off.

Shan Aggarwal, vice president of corporate and business development at Coinbase Ventures, revealed that he expects the VC firm to begin contributing to the company’s overall revenue in the coming months, despite ventures being a “long-term game.”

It typically takes five-plus years for those firms to mature and to see material exits, said Aggarwal on Wednesday at the Messari Mainnet Conference in New York.

We are getting to that point now where, particularly as we start to diversify some of the positions that we have and recycle that capital, we'll start to see it show up in our income statement and then become a larger portion of our balance sheet, he said.

While the Coinbase executive refused to reveal which specific ventures have proven fruitful, he did say that the firm has begun to “selectively exit” positions that it has held for five or more years. We've had a handful of exits. We haven't really disclosed them publicly as of yet, but I’m confident that they'll start to show up in our publicly traded financials, he said.

A Coinbase spokesperson later noted that, while the firm expects to see returns from venture activity in the coming year, Coinbase Ventures emphasizes a long-term approach that focuses on recycling capital. The company has not shared specific projections on how those returns will impact its 2025 financials.

Coinbase Ventures has invested in more early-stage crypto and blockchain startups than any other crypto venture capital, typically making initial investments of $1 million to $5 million.

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