Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Venture capitalists flock to crypto startups, increase investments in 2021

Published 04/11/2021, 02:55 PM
Updated 04/11/2021, 03:00 PM
Venture capitalists flock to crypto startups, increase investments in 2021

Venture capitalists flock to crypto startups, increase investments in 2021

As a spillover from multiple crypto investments from institutional players like MicroStrategy last year, VC funds appear to want more from the crypto action.

Venture capital funding has ramped up investment in crypto and blockchain startups in 2021 in a bid to tap from the exponential growth potential. Data shows that crypto startups have received more funding in the first quarter of 2021 than the whole of 2020.

According to a Bloomberg report, citing data from business analytics firm CB Insights, 129 crypto businesses welcomed a total of $2.6 billion in funding in the first quarter of 2021. Comparatively, crypto and blockchain firms received a total of $2.3 billion in 341 deals in the whole of 2020.

Despite the impressive numbers this year, 2018 remains a record year in terms of the funding received by crypto-based startups. In 2018, the sector attracted $3.3 billion in funding. That being said, the year is still fresh and with the current bullish trend, it is possible that VC funding appetite for blockchain companies may push the numbers to new highs.

CB Insights asserts that the increase in funding this year was largely driven by three companies – American crypto lending startup BlockFi, Canadian blockchain game maker Dapper Labs, and UK-based crypto wallet provider Blockchain.com. In total, all three companies received nearly $1.1 billion in funding this year.

While BlockFi completed its $350-million funding round in March, Blockchain.com raised $300 million in the same month following an earlier $120 million funding in February. Meanwhile, Dapper Labs, the brain behind the popular Ethereum-based game CryptoKitties and NFT marketplace NBA Top Shot, received $305 million from VCs in Q1 2021.

Apart from the growth in venture capital funding, the crypto industry has witnessed several mergers and consolidations this year. Henri Arslanian, the global crypto leader at PricewaterhouseCoopers, opined that 2021 figures are on track to surpass the mergers and acquisitions recorded in the previous year.

Continue reading on BTC Peers

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.