The love affair between venture capitalists and cryptos shouldn’t end anytime soon. More than 120 companies had made at least two investments in blockchain companies by mid-2018, FX Empire wrote. The interest of venture capitalists in cryptos has increased in recent years. Institutional Investor reports that venture capital firms invested $ 32.8 billion in crypto projects last year. According to their data, the total investment for that year exceeded that of all previous years combined.
Almost half of the funds were invested in trading
Institutional Investor adds that 43% of crypto funding has gone to companies involved in trading, investing, exchange services, and lending crypto assets. Just under a fifth went into DAOs, Metaverse, NFT and Web3 startups. There were also investments in DeFi, infrastructure and custody.
The role of a16z
A16z, better known as Andreessen Horowitz, is one of the largest venture capital firms in the market. They founded a fund dedicated to digital assets last year. FX Empire reports that the company has $ 26.2 billion in assets under management. Assets managed by crypto funds stand at $ 3.1 billion.
Over 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto or trade cryptocurrency via CFDs
This announcement promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and the United States (by eToro USA LLC); which is very volatile, unregulated in most EU countries, no EU protection and unsupervised by the EU regulatory framework. Investments are subject to market risk, including loss of principal.
Notable active investments in the crypto wallet include Near, Dapper, OpenSea, diem, Uniswap, and Polychain Capital. They recently left the Coinbase cryptocurrency exchange.
Andreessen Horowitz rarely encounters difficulty raising capital. Yesterday it emerged that they had raised $ 9 billion to “strengthen its involvement in both crypto and technology.”
Build exposure to new digital assets
In 2021, the breakdown of VC investments around the world indicated that VC funds may be looking to gain exposure to Metaverse, Web3, NFT start-ups and DAOs. The TGV4 venture capital fund reportedly invested $ 25 million in Web3 blockchain companies last month. According to a company report:
The company is looking to invest in major verticals such as infrastructure and financial services, including Play-To-Earn (GameFi), Metaverse and NFT games.
Expectations for 2022
2022 could be a big year for start-ups, investors, and businesses looking for late-stage investments. Regulators will largely determine the outcome. It looks like more oversight awaits the industry, as there has been a lot of chatter and activity from regulators over the past year.
China seeks to curb growth
China is one of the countries that will try to curb the growth of the metaverse. FX Empire has reported on some well-known Chinese multinational companies seeking to enter this arena amid increasing government scrutiny.