- 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.
VC investment in cryptocurrency and blockchain companies:— Jon Erlichman (@JonErlichman) January 20, 2022
2021: $30 billion
2020: $6.5 billion
2019: $3.9 billion
2018: $8 billion
2017: $1.9 billion
2016: $1.1 billion
2015: $1.1 billion
2014: $900 million
2013: $300 million
2012: $100 million
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.