According to CB Insights, approximately $2.6 billion was raised by 129 blockchain startups in Q1 2021. This figure is much higher than the $2.3 billion raised by 341 deals in 2020.
Major fundraising dominates
According to a report, the capital raised during this period is further proof that venture capitalists are pouring money into cryptocurrency-related companies at the fastest pace in years. However, the data also shows that the increase was largely fueled by several large funding rounds for startups, including cryptocurrency lenders Blockfi Inc, Dapper Labs and Blockchain.com.
In March, Blockfi announced the closing of a massive Series D financing of $350 million that values the company at $3 billion. Previously, Blockfi raised $50 million in August 2020. Meanwhile, Blockfi has raised about $450 million after this latest round of funding.
Similarly, games maker Dapper Labs announced in late March that it had closed a $305 million funding round, bringing the startup’s valuation to $2.6 billion. On the other hand, Blockchain.com announced in late March 2021 that it received $300 million in its Series C funding round. After the latest round, Blockchain.com’s valuation has risen to $5.2 billion.
Meanwhile, the same data from CB Insights suggests that total capital raised will exceed $3.3 billion by the end of 2018. This amount, which is the highest to date, was raised during the 2017/18 crypto bitcoin bull market. But now that that run is over, interest in blockchain and crypto startups seems to be cooling, as evidenced by the $2.1 billion capital raise in 2019.
However, as of 2020, venture capitalists seem to be showing renewed interest in blockchain startups. This renewed interest seems to have been driven by the resurgence of crypto assets that began in the second half of 2020. Already in the first quarter of 2021, bitcoin’s market capitalization has risen to over $1 trillion, while the entire crypto-currency market seemed well on its way to passing the $2 trillion mark.
Do you think the inflow of capital in 2021 in the form of blockchain and crypto startups will surpass that of 2018? Tell us what you think in the comments below.
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