Crypto And Blockchain VC Funding Increased 90% In Q2 2021
The amount of venture funding directed toward crypto and blockchain projects and companies is growing at a rapid speed. During the second quarter of 2021, according to data collected by The Block Research.
As noted in a new by-the-numbers breakdown by The Block Research’s John Dantoni, a total of 497 related venture deals occurred during the period.
When excluding the $9.7 billion capital injection by Block.one into the crypto exchange venture Bullish, the second quarter saw $6.2 billion in private funding directed toward the digital asset industry, as shown in the chart below.
This represents an approximately 90% increase quarter-over-quarter, The Block Research found.
According to Dantoni’s report, of the total number of deals, the bulk of the deals that took place were in the form of early-stage and seed deals, accounting for 171 and 202, respectively.
Crypto financial services companies and infrastructure-focused companies drew the most venture interest.
The venture capital firms’ interest in crypto has been rapidly growing this year. According to a report from CB Insights, venture capital funds invested $2.6 billion in over 129 crypto-based startups in the first quarter of 2021. This accounts for more than all of 2020, which saw $2.3 billion in investments across 341 deals. The increase was primarily fueled by Bitcoin surging to new highs, bringing in more corporate buyers and retail investors.
At the moment when Bitcoin trades mostly sideways, and the whole crypto market seems stagnant, it will be interesting to see if the VC investment trend changes for Q3 and Q4 2021.
