about 2 years ago • 1 min
The crypto industry is little more than a decade old, sure, but it’s attracting loads of investments from venture capital (VC) funds. In fact, as the graph above shows, VC funds have poured almost $30 billion into the crypto industry in 2021 – more than in all previous years combined. That’s also almost quadruple the previous high of around $8 billion in 2018 – the year after bitcoin’s price increased more than tenfold.
The investments were widespread across many different crypto sectors, from decentralized social media and finance applications, to NFTs and cryptocurrency exchanges. In fact, as established crypto investors looked to bet on the next big thing, all sorts of experimental projects managed to secure funding.
Leading the funding rounds were VC arms of crypto firms like Coinbase Ventures, fintechs like Revolut and Robinhood, dedicated crypto VC firms like Digital Currency Group and Polychain Capital, and VC giants like Andreessen Horowitz. But it remains to be seen whether the VC rush is proof that crypto went mainstream this year, or if it’s all just a sign of a bubble brewing…
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.