How Top Venture Capitalists are Playing the Long Run – Investing in Crypto 

by Guest Author on September 2, 2021

in Cryptocurrency

Cryptocurrency is all the fuss nowadays – but – you’d be surprised to know that venture capitalists have been looking over crypto for the past decade or so. Hundreds of investors have invested billions in blockchain technology, it’s not a shocker. 

There are obviously market fluctuations and capitalists have hesitated but that’s no longer the case. 

Well-known hedge funders, the likes of Paul Tudor Jones and Stanley Druckenmiller have always been one step ahead. They were the ones who trusted “crypto” as an inflation hedging investment and now others are following their path. 

Point is, cryptocurrency is slowly becoming mainstream – more than ever. I mean, even Tesla and Square Inc hold high-value portfolios. 

Anyway, let’s take a more in-depth look at how companies – venture capital funds, in particular, have paved the way for others in the crypto world. 

Blockchain and Venture Capital – Investments Totaled Up

Figures show that a total of $17B was invested by VC funds in 2021, a new record. The $10 billion dollar investment by Block.one was the highlight, it takes more than half of the total funds generated. 

And while Block.one was busy with Bullish Global, a surplus of $300 million was raised in a funding round. Block.one is trying to establish its dominance, empower other crypto enthusiasts.

In other news, the trading app Robinhood also managed to secure a funding of $660 million in a round last year. 

Investors such as Ribbit Capital, 9Yards Capital, and D1 Capital Partners came forward – each contributing around $200 million. It’s a trajectory though, an exponential rise. Robinhood barely crossed $50 million in 2015. 

Ah, Ledger is another crypto startup that focuses on hardware wallets – it had one of the biggest closings in Q1 2021. After Robinhood, the round generated $380 million. Analysts say that despite the volatility, VC firms have an optimistic outlook on crypto’s future. 

Fortunately, the future is bright and VC capitalists are more than willing to step out of their comfort one and are looking towards “innovative” projects. Recently, even Andressen Horowitz, one of the leading capital firms, announced a $2.2 billion funding – exclusively for crypto and blockchain startups. 

Keep a Look at These Venture Capital Firms 

You might have observed that both traditional and crypto-centric VC funds are eager to invest in the market, expand their portfolio. As we mentioned, Andreessen Horowitz (a16z) is inclining towards crypto just now along with other firms. 

It’s good that mainstream capitalists are starting to show their curiosity towards blockchain but we’d like to give closure to crypto-focused ones too. It’s crucial to acknowledge the role crypto Venture Capitalists (VC) play – investors usually trust them the most.

I mean, who wouldn’t – these guys have years of “crypto” experience. In a nutshell, crypto VCs know which startup is actually scalable. So, here are the three top-most influential VC firms we think are worth highlighting. 

Digital Currency Group 

A conversation about investors is incomplete without one of the leading blockchain influencers. DCG has been a vocal player, one of the earliest contributors. Since 2013, Barry Silbert and his team have been on a journey to revolutionize bitcoin exchanges. 

To put it in perspective, their subsidiaries include CoinDesk and Ripple (among others, there’s a surprise) – the two most popular crypto platforms. For upcoming years, Digital Currency Group can be considered if you’re looking for a safe investment gateway. 

A veteran name, they started off with less than a million to invest in BitPay ( a crypto payment service). Now, BitPay is the go-to option for crypto-related transactions. With 39 investors, the company gets regular funding – the latest amount being $2.5 million

Now, you’d be surprised to know that even Grayscale’s parent company is DCG. We can explain. So, Barry Silbert launched a subsidiary – Grayscale Bitcoin Investment Trust. And the rest is history. After securing $208 million, Silbert kept on venturing. Today, Grayscale Investments is the world’s biggest digital currency asset manager and he is the CEO.  

Marshland Capital  

Once you come across Marshland Capital, the first thing you’ll notice is how much they focus on crypto-oriented funds, specifically looking after companies that are at the initial development stage. 

Marshland Group started off as traditional venture capitalists, but over the years, with the progress of blockchain – their sole focus is to help businesses scale up with their digital currency ideas. 

The most recent example being Launch X – a decentralized IDO launchpad platform. And the Launch X closed at over $600k. It was certainly a proud moment for the company. 

The founder, David Marshall, released a statement on Launch X – wishing it best for future projects and was confident about its success. 

Bit.Country – a community driven platform where users can start their own metaverse and deal with NFTs had the opportunity to collaborate with Marshland. 

The VC helped Bit.Country close a $4 million deal – Marshland Capital was one of the leading investors. 

Pantera Capital

Last but not the least, Pantera Capital. Another classic name in the market, the firm started focusing on cryptocurrencies when Bitcoin was just $65, back in 2013. The range of expertise and exclusivity to cryptocurrency remains unmatched with Pantera Capital. 

The hedge firm offers investors a diverse range of options. Token funding, venture funds, bitcoin funds to even more liquid currencies. You name it. 

If we talk about investments, similar to Marshland, Pantera managed to lead a funding round of $1.1 million for BitPesa – a digital currency exchange platform focused on African countries. 

The information disclosed in this article should be used for educational purposes only. We do not endorse any sort of crypto asset and have not given any recommendations. All data is public knowledgable and the editor’s opinion is portrayed. For financial advice, please consult professionals. 

Guest article written by: Zain is a tech buff who writes regularly about digital media, culture, and technology.  He is fond of following trending tech,  marketing insights, and when he is free you’ll usually find him with a comic book.

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