Crypto Start-up Raised Funds Surged Fivefold Compared to 5 Years Back

Former Meta Crypto Head Announces Bitcoin Payments Startup Lightspark
  • Mr. Erlichman has shared the newest Pitchbook report on VC-fueled fundraising.
  • The year-to-year increase in 2021 witnessed a jump of more than 360 percent.

Venture Capital fundraising not only recovered from the 2019-2020 Crypto Winter, but it almost doubled the previous peak recorded in 2018 as well. On Twitter, Mr. Erlichman has shared the newest Pitchbook report on VC-fueled fundraising in crypto and blockchain.

According to figures revealed by the TV host, the amount of money invested by venture capitalists has been steadily increasing since 2012. In 2019-2020, the first significant retracement occurred, coinciding with the so-called “Crypto Winter,” a sharp decline in cryptocurrency prices that followed the 2017 boom.

The year-to-year increase in 2021 was the most dramatic, with a jump of more than 360 percent. Crypto fans pointed out in the comments section of Mr. Erlichman’s piece that, except in 2017-2018, the dynamics of VC financing were associated with end-year Bitcoin (BTC) price development.

Highly Anticipated Year-2022

However, this year might be the year when the record is broken. New funds totaling $4.5 billion have been launched by the premier crypto-focused VC conglomerate Andreessen Horowitz. The venture capital company revealed both the new crypto fund and a seed investment fund targeting $3.5 billion $1 billion, respectively. Investments from the second fund will be made in cryptocurrency start-ups and projects in the early stages of development.

a16z’s competitor, Paradigm revealed its plan to raise a $2.5 billion fund two months ago. More than a quarter of all VC money invested in cryptocurrency last year came from three funds.

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