Crypto and blockchain companies have received a remarkable $11.65 billion in fundraising in 2022. This is according to a recent Fortune report citing PitchBook statistics on crypto business. With the continuation of the current record-breaking trends, the crypto world is on the course to bring the greatest investment this year.
Investment by VC in crypto companies during 2021
According to reports, cryptocurrency-related companies have garnered $33 billion in venture capital (VC) funding in 2021 surpassing previous records with over 2,000 contracts. It represents just a small portion (5%) of the total money invested by venture capitalists last year, indicating that there is still a large scope for further investments.
As per information available, large cryptocurrency startups such as FTX and Circle have just announced huge fundraising rounds. The non-fungible segment of the cryptocurrency market is also gaining investors’ attraction. A recent example is Yuga Labs which is raising $450 million from Andreessen Horowitz and other investors. The Yuga Labs is the firm behind the very famous Bored Ape Yacht Club collection.
Crypto companies’ investment drive even falling crypto market
The fundraising drive comes as cryptocurrencies prices continue to drop. Bitcoin, the most popular cryptocurrency, fell below $40,000 earlier this week before making a slight rebound. Stocks tied to cryptocurrencies are doing much worse than flagship coins. Coinbase (COIN), for example, has lost more than 41% of its value since the beginning of the year. Despite this, capital raising has not been hampered by unfavourable market circumstances.
Aside from market volatility, the crypto business continues to be affected by fraud and theft, posing a significant risk to venture investors. However, the industry has grown to the point that major investors are comfortable with it.
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