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HomeNewsMarketsBlockchain Startups Raised over $4 Billion in VC Funding in Q2 2021

Blockchain Startups Raised over $4 Billion in VC Funding in Q2 2021

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Most blockchain-based startups have seen funding from enterprise backers, regardless of the present cryptocurrency market downturn, recording over $4 billion in Q2 alone.

This huge enterprise capital backing is in maintaining with the established pattern of VC funding for blockchain corporations as traders look to be a part of the brand new wave of disruption related to decentralized finance.

VC Backers Continue to Dole Out Funding for Blockchain Startups

According to CNBC on Thursday (July 22, 2021), enterprise capital traders appear to not fear concerning the unstable nature related to the crypto market, particularly with the present droop in market costs. Bitcoin, which reached an all-time excessive )ATH) of over $63,000 again in April, is buying and selling inside the $33,000 vary, dropping over 50% of its ATH. Ether worth has additionally suffered a droop after attending to over $4,000 in May.

Meanwhile, knowledge from CB Insights, an analytics agency, revealed that the whole funds acquired by completely different blockchain firms are $4.38 billion. The determine indicators a greater than 50% enhance from Q1 2021, and virtually a ninefold progress in comparison with Q2 2020.

In May, main fintech firm Circle received $440 million from VC backers, making it the biggest enterprise capital funding in a blockchain firm. Meanwhile, Circle is planning to go public by an alliance with a particular function acquisition firm (SPAC) Concord Acquisition Corp. The merger, if profitable, will put Circle’s valuation at $4.5 billion.

Ledger, a cryptocurrency {hardware} pockets, raised the second-biggest spherical in Q1 2021 with $380 million. According to an interview with CNBC in December 2020, the corporate’s CEO Pascal Gauthier famous that the cryptocurrency market was step by step maturing, with institutional traders exhibiting curiosity in the rising business.

Speaking to CNBC, CB Insights senior analyst, Chris Bendtsen :

“At the current rate, blockchain funding will shatter the previous year-end record — more than tripling the total raised back in 2018. Blockchain’s record funding year is being driven by the rising consumer and institutional demand for cryptocurrencies. Despite short-term price volatility, VC firms are still bullish on crypto’s future as a mainstream asset class and blockchain’s potential to make financial markets more efficient, accessible, and secure.”

Institutional Investors Seek Exposure to Crypto Industry

The report influx of funding for blockchain corporations is coming from each conventional VC funds and blockchain-focused funds alike. Some asset managers are even creating blockchain enterprise arms for each early and late-stage funding of initiatives in the business.

As beforehand reported by CryptoPotato in June, enterprise capital big Andreessen Horowitz introduced the launch of a $2.2 billion cryptocurrency fund. According to the corporate, the brand new fund can be distributed throughout varied crypto and blockchain startups.

Blockchain Capital raised $300 million for its Fund V LP again in May, with PayPal, Visa. hedge funds, and others taking part in the capital increase.

Meanwhile, the pattern is constant in Q3 2021 with huge funding offers. Recently, main cryptocurrency derivatives platform FTX secured a record $900 million in its Series B funding, inflicting the corporate’s valuation to develop to $18 billion.

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(This story has not been edited by CryptoNFT | Latest News Live and is revealed from a syndicated feed.)

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