The year 2021 turned into a record year for investment activity in the crypto market, with an impressive number of venture capitalists pouring money into crypto startups.
Crypto companies, according to Block Arabia, raised $12.4 billion in funding YTD, more than in the last three years combined.
Investment activity soared
Data from Crunchbase shows that during 2018, crypto startups raised $4 billion in funding rounds, with the cumulative funding amount reaching $7.9 billion that year. However, in 2019, the investment activity dropped, with the total value of investment falling by 30% YoY to only $2.8 billion.
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Although last year witnessed a significant slowdown in venture capital funding caused by the COVID-19 pandemic, the total value of investments was still higher than in 2019, amounting to $3.6 billion. Also, by the end of Q4 2020, the cumulative funding amount rose to $14.3 billion globally.
However, in 2021, the investors flocked to this sector, with crypto companies raising more money than ever in the first half of the year.
In the first quarter, startups operating in the crypto market raised around $6.1 billion, more than in 2019 and 2020 combined. The strong investment activity continued in the second quarter of the year, with companies raising another $3.6 billion. Statistics show that Q2 2021 was also the quarter with the highest number of investments into crypto startups or 284 in the three months.
Since June, companies operating in the crypto market raised another $2.7 billion, with the cumulative funding amount rising to $26.7 billion last week, a massive 327% increase compared to a year-ago period.
US crypto startups raised more funding than anywhere else
Statistics show that US crypto companies lead in the total value of investments, with $16.5 billion in funding rounds so far. Asian companies hit $4 billion in total funding as of last week, one-fifth the value of their US peers, ranking as the second-leading region globally. European crypto startups follow with $3.7 billion, respectively.
Statistics also show that US crypto companies raised 50% more money than Asian and European companies combined.
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Analyzed by type of funding, Series B funding rounds lead with $3.5 billion worth of investments. Initial coin offering ranked as the second most popular way to raise fresh capital in the crypto space with $3.3 billion in total funding.
Series A funding rounds have brought in around $3.1 billion so far. Convertible notes and Series C funding rounds follow, with $2.5 billion each.
