According to data from data analysis company CB Insights, by the first quarter of 2021, about 129 blockchain-centric startups have raised about $2.6 billion in funding, which easily exceeds the total of 341 transactions raised. Of USD 2.3 billion in 2020.
Large financing rounds dominate
As stated in a report, the funds raised during this period provide further evidence that “venture capitalists are injecting capital into cryptocurrency-related companies at the fastest rate in recent years.” However, the data also shows that this growth is very high. To a large extent, it was “driven by the large-scale financing of several startups including crypto lenders Blockfi Inc, Dapper Labs and Blockchain.com.”
In March of this year, Blockfi revealed that it had completed a $350 million round D financing, and the company’s market value reached $3 billion. Prior to this, Blockfi had raised $50 million in August 2020. At the same time, after the latest round of financing, Blockfi has raised approximately $450 million since its inception.
Similarly, game maker Dapper Labs announced in late March that it had “finished $305 million in financing,” and the startup was valued at $2.6 billion. On the other hand, Blockchain.com revealed in late March 2021 that it had received $300 million in funding through its Series C financing. After this latest round of financing, Blockchain.com’s valuation rose to 5.2 billion US dollars.
Ready to go in 2021
At the same time, the same CB Insights data shows that blockchain and cryptocurrency startups are expected to exceed the total funding of $3.3 billion in 2018. This is the highest total so far and was raised during the 2017/18 Bitcoin bull run in the crypto market. However, after the end of this bull market, interest in blockchain and crypto startups seems to be gradually waning, as evidenced by the $2.1 billion in financing in 2019.
However, since 2020, venture capitalists’ interest in blockchain startups seems to have rekindled. This new interest seems to be driven by the renaissance of crypto assets beginning in the second half of 2020. In the just-concluded first quarter of 2021, the market value of Bitcoin soared to more than US$1 trillion, and the market value of the entire crypto market seems to be growing and is expected to exceed the US$2 trillion mark.
Do you think that the amount of funding raised by blockchain and crypto startups in 2021 will exceed that in 2018? Tell us what you think in the comments section below.
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