VC poured $ 30 billion into the crypto market in 2021
VC poured $ 30 billion into the crypto market in 2021. If investment were to serve as a gauge of whether cryptocurrencies were going mainstream, it could be argued that 2021 will be the year of adoption by investors, investments, and the public.
Investors are pouring $ 30 billion into crypto space
According to PitchBook, venture capitalists (VCs) had poured around $ 30 billion into the crypto industry by December 15 this year alone, more than any other year.
The data showed the metric hit an all-time high (ATH) of $ 8 billion in 2018, meaning that investment has quadrupled from the previous ATH.
According to Bloomberg, the increased mutual funds could be linked to some of the new innovations that can now be found in the crypto space. The growth of NFT, DeFi, Web 3.0 among others has made this space a very attractive option for investors.
That view is shared by PitchBook analyst Rob Le, who said that “investors fund everything”. Spencer Bogart, General Partner at Blockchain Capital LLC, also recognized niche growth in the crypto market, adding that investors currently think they “haven’t had enough exposure to the industry.”
While the growth and investment in crypto this year has been laudable, there is a general consensus among industry experts that we are only in the infancy as it has already started and is expected to have up to 1 billion users in the next 5 years.
Who is investing? Where are you investing?
Data from PicthBook shows that Coinbase Ventures, which closed around 68 deals this year, Digital Currency Group with 58 deals and Polychain Capital with 44 deals are among the top VCs in the crypto market. Other VCs that made it into the top 5 are Pantera Capital and Andreessen Horowitz with 43 and 40 deals respectively.
These VCs have participated in a number of notable funding rounds, including FTX, a crypto derivatives exchange that raised $ 1 billion in a Series B funding round in July, and the New York Digital Investment Group, which recently raised $ 1 billion has applied. Other notable rounds of crypto funding include Robinhood, Dapper Labs, and MoonPay.
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