Blockchain has been hailed as the next big thing in disruptive technology, and VCs are increasingly investing into crypto-related companies. Experts say that this will lead to increased innovation across industries beyond just finance
The “vc investment in crypto” is the amount of money that venture capital firms have invested into the cryptocurrency industry. There was a recent $30 billion investment by VCs.
If crypto investments are used as a criterion to determine if crypto has finally gone mainstream, 2021 might be considered the year in which the sector earned acceptability from both investors and the general public.
Investors have poured $30 billion into the cryptocurrency market.
According to statistics from PitchBook, VCs have invested roughly $30 billion in the crypto business this year alone, as of December 15. The ATH of crypto investments happened in 2018, when investors poured $8 billion into the market, according to the statistics. This implies that investors have put almost four times as much money into the sector as they did in 2018.
According to Bloomberg, the rise in crypto investments might be attributed to a slew of new advancements in the industry. The rise of NFTs, DeFi, Web 3.0, and other technologies has made the field increasingly appealing to investors.
PitchBook analyst Rob Le echoed this sentiment, saying, “Investors are financing everything and anything.” Spencer Bogart, a general partner at Blockchain Capital LLC, also mentioned the expansion in certain crypto sectors, saying that investors now believe they “don’t have enough exposure to the business.”
While crypto’s growth and investments have been impressive this year, experts in the sector agree that we are just scratching the surface, as the field is expected to expand to 1 billion users in the next five years.
Who is putting their money into it? Where are they putting their money?
According to PicthBook, Coinbase Ventures, which has concluded roughly 68 transactions this year, Digital Currency Group, which has done 58 deals, and Polychain Capital, which has closed 44 deals, are the leading venture capital investors in the crypto market. Pantera Capital and Andreessen Horowitz, with 43 and 40 transactions respectively, round out the top five.
These investors were part of several noteworthy investment rounds, including FTX, a crypto derivatives exchange that received $1 billion in its Series B funding round in July, and New York Digital Investment Group, which just raised $1 billion.
Robinhood, Dapper Labs, and MoonPay, to name a few, have all received significant crypto financing.