2021 was an interesting year in the world of cryptocurrencies. Bitcoin (BTC) hit all-time highs in a number of different metrics, including adoption, media coverage, and price action. It has been exciting to see all the coverage and attention being paid to all things cryptocurrency, including interest in non-fungible tokens (NFTs), decentralized finance (DeFi), and even large publicly traded companies like MicroStrategy, which they have large amounts of BTC in their balance. All of this is the public face of the crypto industry.

However, this does not happen on its own. There are teams of people and projects working every day to improve existing applications of crypto and trying to be the next DeFi phenomenon, NFT craze, or the solution to a legacy problem that only blockchain can efficiently solve.

This 12-page report, drawn from Cointelegraph Research Terminal’s database of venture capital transactions, M&A activity, cryptocurrency investors and companies, shows insights into investment activities in 2021 The report provides significant insights into the trends of recent years and what venture capitalists are focused on in 2021.

the next block

The next stages of the blockchain revolution are being built behind the scenes, but this takes time, and one important aspect that can be overlooked is capital investment. Venture capital (VC) can come from many different sources, such as high net worth individuals (HNWIs), family offices, institutions, funds, and even decentralized autonomous organizations (DAOs).

Knowing what is being built, who is behind it, and the network helping to build a project can help stakeholders get a head start on the future of the blockchain industry, rather than reading online news articles about it. results after the fact.

Download the full report here, complete with charts and infographics.

Cointelegraph Research Terminal, in conjunction with Keychain Ventures, will publish quarterly reports on behind-the-scenes events regarding VC capital inflows into the blockchain industry. Before releasing the 2022 Q1 venture capital report, Cointelegraph Research will publish a 12-page report highlighting venture capital activity in 2021.

Venture capital interest in crypto and blockchain is on the rise

2021 saw an unprecedented increase in active deals and total capital inflows. In 2020, there were 838 deals with a total aggregate capital of $4.9 billion. The number of deals jumped in 2021 to 1,349 deals and just under $30.5 billion in equity investments.

The global impact of COVID-19 accelerated interest in digital assets, with major companies like Visa, Mastercard, PayPal, and Nike investing heavily in different sectors of the blockchain space, including DeFi, infrastructure, and NFTs.

The ten most active venture capital funds accounted for about 65% of all individual deal activity in 2021. Nine of the ten favored DeFi to invest in 2021, except for Animoca Brands, which went against the norm and invested heavily in NFTs.

The second most invested sector was NFT, and third place was shared by Web3 and Infrastructure. CeFi, interestingly, was the least invested sector. Only Alameda Research and Coinbase Ventures invested in double-digit percentages of their overall activity.

Considering all individual investments in 2021, the majority of VC investment rounds were made in pre-seed and seed rounds. However, these rounds did not get the highest equity funding compared to others. Series B, for example, only ran for 61 rounds but raised $6.8 billion. Post-Series B expansion rounds, which include debt financing, strategic partnerships and treasury diversification, had more than 200 rounds and nearly $10.27 billion in investments.

Mainly acquisitions in the world of cryptocurrencies 2021 M&A

There were significant deals in the M&A department in 2021. The increased concentration on acquisitions over mergers in the business cycle stage of the blockchain industry makes sense as it has not yet reached any real maturity level.

While nearly every deal on this list was of major importance, several stand out as being of greater importance to the blockchain industry and the direction of the markets in general. These include Mastercard’s acquisition of CipherTrace, PayPal’s acquisition of Curv, Visa’s acquisition of Tink, and Nike’s purchase of RTFKT Studios.

These strategic purchases have significant meanings for Mastercard, PayPal, and Visa’s actions will expand each corporation’s involvement in DeFi and infrastructure, such as fiat on-ramps and off-ramps, payment gateways, and systems that take advantage of blockchain’s unique technological advantages, such as the triple ledger accounting. Nike’s acquisition of RTFKT Studios shows a willingness to embrace the growing market interest in NFTs, which can have a huge impact on the world of sport.

Quarterly Venture Capital Reports from Cointelegraph Research Terminal and Keychain Ventures

The report is pulled from the extensive Cointelegraph Research Terminals database along with analysis by Michael Tabone, an economist at Cointelegraph Research. Michael has extensive experience in economics, business, finance, cryptocurrencies, blockchain technology, and working with emerging technologies. In addition to working for Cointelegraph Research, Michael has a Ph.D. candidate working on his dissertation, which focuses on DAO theory and application.

Keychain Ventures is a crypto investment company that is dedicated to investing different funds in the blockchain space. Keychain Ventures, along with Cointelegraph Research, will feature quarterly interviews with venture capital firms as well as cryptocurrency/blockchain projects that have recently gone through a funding round. These interviews will open up different views of the investment practices of all parties.

This article is for informational purposes only and does not represent investment advice or investment analysis or an invitation to buy or sell financial instruments. Specifically, the document is not a substitute for individual investment or other advice.



This post Venture Capital Year In Review 2021: Cointelegraph Research Terminal

was published first on https://cointelegraph.com/news/venture-capital-year-in-review-2021-cointelegraph-research-terminal

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