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Venture Capitalists Race to Crypto Businesses, Growing 2021 Investments

By Jamie G - Cryptocurrency Investor - 11/04/2021

VC funds want more from the crypto space in response to the frequent crypto investments in 2021 from institutional buyers like MicroStrategy.

Venture Capital funding has increased its commitment in investing in cryptocurrency and blockchain start-ups in 2021. According to data, crypto start-ups earned more grants in the first quarter of 2021 than they did in the entire year of 2020.

As per Bloomberg, 129 cryptocurrency trading companies received a total of $2.6 billion in backing in the first quarter of 2021, using statistics from business analytics company CB Insights. In comparison, crypto and blockchain companies earned $2.3 billion in 341 transactions in 2020.

Due to the remarkable figures this year, 2018 remains a record year for crypto-based start-ups in terms of funding. The sector received $3.3 billion in funding in 2018. With the latest bullish trend, the year is still young, VC funding demand for blockchain companies will likely reach new highs.

According to CB Insights, the rise in funding this year was primarily led by three companies: BlockFi, an American crypto lending start-up; dapper Labs, a Canadian blockchain game developer; and Blockchain.com, a UK-based crypto coin storage provider. This year, the three firms earned almost $1.1 billion in funding.

BlockFi accomplished its $350 million funding round in March, and Blockchain.com earned $300 million in the same month, after a $120 million funding round in February. In addition, Dapper Labs, the company behind the influential Ethereum-based game CryptoKitties and the NFT marketplace NBA Top Shot, raised $305 million from venture capitalists in the first quarter of 2021.

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https://btcpeers.com/venture-capitalists-flock-to-crypto-startups-increase-investments-in-2021/

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