According to a recent Fortune story citing statistics from PitchBook, bitcoin and blockchain firms have received a remarkable $11.65 billion in finance.
If the current record-breaking trend continues, the bitcoin business will earn the most money this year.
According to Galaxy Digital data, cryptocurrency startups attracted $33 billion in VC funding in 2021, with over 2,000 deals, smashing previous records. While the aforementioned statistic is outstanding, it represents only a small portion (5%) of the money spent by venture capitalists last year, indicating that there is still opportunity for growth despite a $141 year-over-year gain.
In recent months, large cryptocurrency firms such as FTX and Circle announced massive fundraising rounds. There is also significant interest in the bitcoin industry’s non-fungible segment, with Yuga Labs, the company behind the Bored Ape Yacht Club collection, raising $450 million from venture capital firm Andreessen Horowitz and other investors.
The fundraising frenzy is taking place against the backdrop of dropping cryptocurrency prices. Bitcoin, the most popular cryptocurrency, fell below $40,000 earlier this week before making a modest rebound. Cryptocurrency-related stocks have outperformed flagship coins. For example, Coinbase (COIN) stock is down more than 41% since the beginning of the year. Despite this, capital raising has not been hampered by unfavorable market conditions.
Aside from market volatility, the crypto business is still rife with fraud and crime, posing a significant risk to venture capitalists. However, the business has grown to the point where big-name investors are quite comfortable with it.