Despite the phase of crypto winter across the globe, not everything is going downhill. The Venture Capitalist (VC) funds provide financial support to young companies with high growth potential. A recent Reuters report presented a solid growth prospect for the future of crypto and blockchain technology despite the bearish market.
As per the observation, venture capitalists are investing in digital currencies and blockchain startups even when the bleak winter is making the crypto world shiver. To add to it, the past investment is set to outreach the past year’s record.
Venture Capitalists All Set To Break Last Year’s Record
As if to put it in the face of the sharp dump in the crypto market, the VC funding in the crypto and blockchain tech field is all set to break the 2021 record. In the year’s first half, venture capitalists poured a total of $17.5 billion into this sector. This puts the track of investment in a position above the record $26.9 billion, which was raised last year, when it was a cozier and happier time for Bitcoin, and the crypto world.
The data indicate that there has not been any significant effect on the faith of VC investors in the growth prospects of crypto and blockchain companies. Several major cryptocurrencies like Bitcoin and Ethereum have been witnessing severe lows in current market blues after hitting all-time highs just a year ago.
Factors like immense inflationary increase, a series of aggressive hikes in the interest rates by the central banks, and the tumbling down of the algorithmic stablecoin TerraUSD and LUNA have forced investors away from cryptocurrencies. The largest currency in the world, Bitcoin, went down by approximately 65% from its record high of $69,000 in November 2021. The total value of the entire crypto market stumbled upon two-thirds and came down to $1 trillion.
Roderik Ven Der Graf. is the founder of Hong Kong investment firm ‘Lemniscap’; a company interested in cryptocurrencies and blockchain tech. He said, “The current market conditions – I don’t think they faze investors… The capital available is massive.”
North America: The Venture Capitalist Hub For Crypto
Over the past few years, North America has consistently been the hotspot for funding via VCs. Even in the latest data from Pitchbook, North America still holds its spot in 2022. In the first half of 2022, the region recorded $11.4 billion of VC investments in the crypto and blockchain sectors. In 2021, the amount was $15.6 billion.
However, if we look at the trend in the United States, Venture Capitalist activity plunged to $144.2 billion during H1. In the same period last year, it was $158.2 billion.
Europe also witnessed a consistent and strong stay of VC funding. In the first half of 2022, the region recorded $2.2 billion in VC investments.