CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$26,190.00
  • ethereum
    ETH$1,577.87
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Blockchain Startups Raised over $4 Billion in VC Funding in Q2 2021

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

    Author: Anthonia Isichei

    Last Updated Jul 24, 2021 @ 09:06

    Blockchain-based projects received upwards of $4B in VC funding in the second quarter of 2021 alone.

    Most blockchain-based startups have seen funding from venture backers, despite the current cryptocurrency market downturn, recording over $4 billion in Q2 alone.

    This massive venture capital backing is in keeping with the established trend of VC funding for blockchain firms as investors look to be part of the new wave of disruption associated with decentralized finance.

    VC Backers Continue to Dole Out Funding for Blockchain Startups

    According to CNBC on Thursday (July 22, 2021), venture capital investors seem not to worry about the volatile nature associated with the crypto market, especially with the current slump in market prices. Bitcoin, which reached an all-time high )ATH) of over $63,000 back in April, is trading within the $33,000 range, losing over 50% of its ATH. Ether price has also suffered a slump after getting to over $4,000 in May.

    Meanwhile, data from CB Insights, an analytics firm, revealed that the total funds received by different blockchain companies are $4.38 billion. The figure signals a more than 50% increase from Q1 2021, and almost a ninefold growth compared to Q2 2020.

    In May, major fintech company Circle received $440 million from VC backers, making it the largest venture capital funding in a blockchain company. Meanwhile, Circle is planning to go public through an alliance with a special purpose acquisition company (SPAC) Concord Acquisition Corp. The merger, if successful, will put Circle’s valuation at $4.5 billion.

    Ledger, a cryptocurrency hardware wallet, raised the second-biggest round in Q1 2021 with $380 million. According to an interview with CNBC in December 2020, the company’s CEO Pascal Gauthier noted that the cryptocurrency market was gradually maturing, with institutional investors showing interest in the emerging industry.

    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 record inflow of funding for blockchain firms is coming from both traditional VC funds and blockchain-focused funds alike. Some asset managers are even creating blockchain venture arms for both early and late-stage funding of projects in the industry.

    As previously reported by CryptoPotato in June, venture capital giant Andreessen Horowitz announced the launch of a $2.2 billion cryptocurrency fund. According to the company, the new fund would be distributed across various crypto and blockchain startups.

    Blockchain Capital raised $300 million for its Fund V LP back in May, with PayPal, Visa. hedge funds, and others participating in the capital raise.

    Meanwhile, the trend is continuing in Q3 2021 with massive funding deals. Recently, major cryptocurrency derivatives platform FTX secured a record $900 million in its Series B funding, causing the company’s valuation to grow to $18 billion.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • paypal_cover1
      PayPal and Visa Lead $300M Funding for Blockchain Capital
    • Amazon
      Amazon Wants a Leader For Its Digital Currency and Blockchain Product Unit
    • SolanaKorea
      The Solana Foundation and ROK Capital Launch a $20 Million Fund
    Tags: Blockchain
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Anthonia Isichei
    More posts by this author

    Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.

  • bitcoin
    BTC$26,190.00
  • ethereum
    ETH$1,577.87
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    DeFi Without Native Rights Is Dead

    DeFi Without Native Rights Is Dead

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    Crypto Will Go Away If There’s No Privacy: Interview With Anoma and Namada’s Adrian Brink

    Crypto Will Go Away If There’s No Privacy: Interview With Anoma and Namada’s Adrian Brink

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!