Funding on the part of venture capitals in the crypto market is now on a high and is threatening to push further into the sky. In a recent report by news entities in the market, the funding by venture capitals has surged up to the point that it has eclipsed the record set the whole of last year by the first quarter of this year.
The companies were the sole beneficiary of about $1.1 billion in the funding round from various investments. And with the rate at which digital assets in the crypto sector see a huge move upward, it only shows that investment from interested venture capitals would continue to abound in the space.
Retail investors are also entering the investment market
Analysts have also mentioned that not only are the venture capitals the huge backers; the retail traders are also adding their widows might to the various investments. With this, various projects launched on IDOs have seen massive performances over the years due to backing by retail traders. In the first quarter of this year, it was reported that about 129 crypto and blockchain start-ups were rewarded with nothing less than $2.6 billion upon start-up.
These figures were culled from a recent Bloomberg report in which the company quoted its source as the CB Insights. Even though the figure is staggering in time, the report also claimed that it has now outpaced the entire amount generated throughout 2020 by about $300 million.
Looking into the firms that benefited the most, the report claimed that blockchain.com, a wallet provider was the leading company while the famous lending platform, BlockFi.com came in second place. The firm rounded up the top three on the list with Dapper Labs while mentioning that they got almost half of the entire figure.
Investment has gone up even without regulatory oversight in the USA
Dapper Labs reporter had gotten a massive $300 million investment from various celebrities, including sports stars, after recording massive growth in the sale of the non-fungible token of the NBA Top Shot. The United States also has the highest number of firms who have benefited from venture capital more than every other region.
This trend is commendable, even though the country has lacked a standard crypto regulation in the last few years since the inception of crypto. According to an analyst, even though the United States has not released a ground rule for crypto start-ups, it has done little to discourage investors from investing in the start-ups around the region.
The profits that these firms and investors stand to earn have been one of the most crucial aspects of the bargain. This has given almost all the investors the confidence to pool their funds into the various investments.