There are many people who are showing interest in investing in the startups that are developing technology for cryptocurrency and blockchain. The funding in this area is not given a break. The VC funds appear to be growing day by day and gaining a huge potential. The venture capital funding for crypto and blockchain has set records in 2021. The crypto firms have got a lot of funding in 2021 when compared to 2020. There are around three companies that have got the funding of around 1.1 billion in the first quarter. 1/3 rd of the funding that is collecting was way back in 2018 for crypto and block chain firms. There is a lot of bullish enthusiasm in the crypto space. The appetite for VC would continue throughout this year.
The funding happened to be in the early stage and has spread to retain area with decentralized exchange offering turning over subsidized. The IDO launch pads are performing at its best now in the cryptocurrency space. In the first quarter of 2021, the blockchain and crypto start-ups have received the funding of around USD 2.6 billion as per yahoo. The number is USD 30 million more than the total funding that the company got in the whole 2020. There is a crypto wallet provider; blockchain.com is lending money to both the BlockFi and blockchain game studio that is run with the name Dapper labs of around USD 2.6 billion. It is the start-up funding that is received in the first quarter of 2021. At the March end, Dapper labs announced the funding of around USD 305 million. This is the funding that the company has got from the celebrities and superstars of cinema. There is a steep rise in the NBA Top shot non-fungible tokens. Since the start of the crypto space, the startups have received a lot of funds. These are published on the Blockchain venture capital report. Though there is no clarity on the crypto space, still the funds have flooded to the companies.
There is a VC firm named Kinetic, which is based out of Hong Kong, has helped get private equity funding for blockchain startups. There is a lot of peer pressure from Elon Musk and Michael Saylor to invest in this market. If VCs found this to be a risky thing, then they might lose the best business opportunity. There would be outsized returns that the company can get along with the equity investments. The Blockchain venture capital report disclosed that the block chain private equity has performed really well compared to the traditional private equity. The performance of the blockchain private equity is not correlated with the mainstream asset class. There is a VC thesis in which it is clearly stated that crypto is an attractive space with a lot of potential for the growth, but it also needs promising validation. The VC funding has hit a 2% rise and fell by 1% at the end of the VC market. Based on the Cointelegraph research, it is clear that the blockchain focused VC funding has been dropped by 13% from 2019 to 2020 and traditional equity funding has hiked to 18% in the same duration.
The early backers are given the opportunity to have cryptocurrencies whose value would be appreciated in the short time. The crypto portfolios will allow one to contribute to the ecosystem of this industry through stake node operations, governance proposals, liquidity and bootstrapping.