Venture Capital Funds Invested A Record $17B Into The Crypto Market This Year
Venture Capital funds are normally defined as pooled investment funds that are responsible for managing the money of various investors who desire private equity stakes with start-ups as well as small to medium scale enterprises and businesses that exhibit a high potential for growth. These investments are also usually thought of as being incredibly high risk, but investors believe that this is worth it due to the high return opportunities.
As such, more than $17 billion have now been invested by the aforementioned Venture Capital funds so far in 2021, which is also a yearly record. Various firms and businesses have been actively investing in the cryptocurrency industry and its market.
The previous record was in 2018, which had about $7.4 billion, less than half of what this year has managed to achieve. Simply put, 2021 has brought together the cumulative investment amount pertaining to every single year from 2010 onwards.
Everyone is making crypto deals nowadays
$10 billion had come from Block.One during this year alone, which was also 2021’s biggest deal thus far. This amount had been invested in Bullish Global, a cryptocurrency exchange that had also managed to raise another $300 million in a recent round of funding.
Furthermore, Ledger (a well-known and popular cryptocurrency wallet company) had received an investment of $380 million, making it the year’s 2nd largest investment as of right now. 10T Holdings had been the one to make this investment. The Chief Experience Officer for Ledger, Ian Rogers, had claimed that everybody should own crypto sooner or later, and so the only thing we should be observing is what price these future investors will get in with. He then added that the protocol phase is where Ledger is currently at and that further developments can be expected soon.
Elsewhere, Dapper Labs and BlockFi had received an investment of $350 million, and $300 million had been invested in Blockchain.com and Paxos.
Acceleration in crypto exposure
This year has seen a massive spike in overall interest for the crypto industry, with many companies and firms looking to gain additional exposure into the crypto market.
Galaxy Digital and Goldman Sachs had partnered up recently to help make the investment bank the first of its kind to trade in Bitcoin (BTC) futures. Earlier on in 2021, Galaxy Digital had also taken measures to obtain BitGo, with the acquisition reportedly being worth about $1.2 billion.
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