Blockchain-Based Start-Ups Record Huge Funding Spike In Q1 2021
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Blockchain-Based Start-Ups Record Huge Funding Spike In Q1 2021

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Azeez Mustapha

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A recent report from data analytics firm, CB Insights, shows that a whopping $2.6 billion has been raised by 129 blockchain-based start-ups in Q1 of 2021. For context, the total amount raised in 2020 by blockchain-based start-ups was a little over $2.3 billion.

The report noted that the amount of capital raised in such a little time is a testament to the fact that “venture capitalists are pouring money into cryptocurrency-related companies at the fastest clip in years.” The report also showed that the spike in funding got “fueled by several large rounds for start-ups including crypto lender Blockfi Inc, Dapper Labs and Blockchain.com.”

Last month, Blockfi reported that it secured a whopping $350 million Series D funding round, which brought its valuation up to $3 billion. Before that, the company was only able to raise $50 million in August last year. That said, Blockfio has now raised a total of $450 million in funding since its inception.

Likewise, game maker Dapper Labs revealed at the end of last month that it had secured a $305 million funding round and was now valued at $2.6 billion. Blockchain.com also secured a whopping $300 million Series C funding round in March, bringing its valuation to $5.2 billion.

Venture Capital Funding for Crypto Space Gets Reignited
CB Insights’ report also noted that blockchain-based start-up funding is on the verge of surpassing the $3.3 billion total funding recorded in 2018 amid the 2017/2018 bull run. Following this record high, blockchain-based start-up funding plunged to $2.1 billion in 2019.

Nonetheless, interest in the crypto space by venture capitalists appears to have gotten reignited since 2020. The renewal of interest got sparked by the resurgence of the cryptocurrency market in the second half of 2020.

While it is still only the first quarter, Bitcoin’s market capitalization surpassed $1trillion, while the entire crypto market capitalization is flirting with the $2 trillion price point.

 

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