Venture capital invested a record $ 30 billion in crypto in 2021, more than quadruple the previous record | Currency News | Financial and business news
- Venture capital invested a record $ 30 billion in crypto in 2021, Bloomberg said, citing PitchBook.
- This is nearly four times the previous record of $ 8 billion in 2018, according to the report.
- Crypto firms Sky Mavis, DapperLabs, and MoonPay all recorded valuations of billions this year.
Venture capital funds invested a record $ 30 billion – more than every two years combined – in crypto investments in 2021, Bloomberg reported.
The report, which cited data from PitchBook, said the sky-high number is nearly four times the 2018 record of around $ 8 billion, in part thanks to investor funding of “anything and everything. “in crypto.
Much of that fundraising – around $ 7.2 billion – came from US venture capital, according to the report. PitchBook did not respond to Insider’s request for data.
For example, Sky Mavis, owner of Axie Infinity, raised $ 150 million at a valuation of $ 3 billion in a roundtable led by venture capital firm Andreessen Horowitz. Axie Infinity, an Ethereum-based play-to-earn game, generated hundreds of millions of dollars in revenue just as gamers did. sought to earn money in crypto video games.
DapperLabs, the non-fungible token platform behind CryptoKitties and NBA TopShot, raised $ 305 million in March to $ 2.6 billion with help from basketball superstars Michael Jordan and Kevin Durant. In November, the self-proclaimed PayPal for crypto known as MoonPay got a valuation of $ 3.4 billion after raising over half a billion dollars with the help of Tiger Global Management and Coatue.
Crypto, an industry that is just over a decade old, has gained ground this year. Bitcoin and ether, the two main cryptocurrencies by market capitalization, hit record highs in 2021. The market for NFTs, a digital art linked to the blockchain, is expected to hits a record $ 17.7 billion by the end of the year, according to research from Co-telegraph. And the metaverse has gained momentum since Facebook’s parent company rebranded itself as Meta, a sign of its move to the next phase of the internet.