Global VC Funding for Blockchain Firms Surged to Record $25B in 2021: CB Insights

Investments in blockchain startups accounted for 4% of global venture dollars, up from just 1% in 2020.

Feb 1, 2022 at 2:00 p.m. UTC
Updated Feb 3, 2022 at 2:23 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Venture capital funding for blockchain startups reached $25.2 billion last year, up 713% from $3.1 billion in 2020, according to CB Insights’ “2021 State of Blockchain” report.

In the fourth quarter of 2021, global funding rose to over $9 billion, up from over $7 billion in the prior quarter, the market intelligence firm added.

Funding for blockchain startups accounted for 4% of global venture dollars, up from 1% in 2020. CB Insights sees this percentage rising further in 2022 given the growth in crypto, non-fungible tokens (NFT) and Web 3 startups.

Venture funding for NFT firms jumped to $4.8 billion in 2021, up from just $37 million in 2020. Meanwhile, global DeFi deals executed reached 240, almost doubling from 124 in 2020.

Overall, over 1,000 blockchain deals were executed in 2021, surpassing 2020’s level of 662. Of those 2021 deals, 79% were early-stage investments, CB Insights said.

Coinbase Ventures was the top blockchain investor in 2021, with investments in 68 companies, followed by China-based AU21 Capital with 51 and Andreessen Horowitz (a16z) with 48.

Overall funding into U.S.-based blockchain companies reached $14.1 billion in 2021, up from $1.7 billion in 2020. New York metro-based companies led the way with $6.5 billion in funding, followed by Silicon Valley at $3.9 billion.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Trending

1
CoinDesk - Unknown
Coinbase Has ‘Structural Advantage’ Over Competitors, Cowen Analyst Says

Stephen Glagola gave the crypto exchange an outperform rating and $85 price target.

Stephen Glagola gave the crypto exchange an outperform rating and $85 price target.

CoinDesk - Unknown
2
CoinDesk - Unknown
Tether Enters Latin America With Mexican Peso-Pegged Stablecoin

The country’s multibillion-dollar remittances business and difficulties in transferring money create a “unique opportunity," the company said.

The country’s multibillion-dollar remittances business and difficulties in transferring money create a “unique opportunity," the company said.

CoinDesk - Unknown
3
CoinDesk - Unknown
Fed Vice Chair Lael Brainard Says CBDC Could Coexist With Stablecoins

A well-designed central bank digital currency could complement stablecoins and cash, Brainard will say in front of the House Committee on Financial Services on Thursday.

A well-designed central bank digital currency could complement stablecoins and cash, Brainard will say in front of the House Committee on Financial Services on Thursday.

CoinDesk - Unknown
4
CoinDesk - Unknown
Ark 21Shares Backers Take Another Shot at Spot Bitcoin ETF Approval

The initial application for a spot bitcoin ETF was rejected in April.

The initial application for a spot bitcoin ETF was rejected in April.

CoinDesk - Unknown