You have no doubt heard the expression, follow the money. Well, if you do it in the world of venture capital, you will come directly to cryptocurrencies, blockchain and digital assets. After a modest summer lull in venture funding, two massive raises worth a combined $500 million were announced this week. This is $500 million that venture capital firms are pouring into cryptocurrency-focused startups at the intersection of Web3, blockchain infrastructure, and decentralized communities.
If you think funding deals have stalled in the middle of the bear market, think again. I mentioned the “summer break” at the beginning, but that doesn’t mean the funding has stopped. There are so many deals, in fact, that I’ve had to start a separate series called VC Roundup just to keep track. Data from Cointelegraph Research also shows that Q2 funding deals were as large as Q1 in dollar terms.
This week’s edition of Crypto Biz takes a look at the latest funding news in the blockchain world.
CoinFund Launches $300M Venture Fund for Early Phase of Web3
Venture firm CoinFund has launched a new investment fund dedicated to all things cryptocurrency. The newly launched CoinFund Ventures 1 will invest $300 million in early-stage companies innovating in the blockchain space, with a key focus on Web3. CoinFund raised $83 million during the 2021 bull market. Its latest deal is more than three times that amount – and it was raised during the depths of crypto winter. That tells us that venture capitalists probably believe that the market has already bottomed or is in the process of doing so.
Blockchain Venture Capital Firm Shima Capital Debuts $200M Fund for Web3
Shima Capital, a venture capital firm founded by hedge fund investor Yida Gao, has debuted a $200 million investment fund targeting startups across the blockchain ecosystem. Shima Capital Fund I, which is backed by Dragonfly Capital, Animoca Brands and OKX, is set to deploy up to $2 million in pre-seed funding for promising startups and innovators. Some of the most promising topics that Shima has identified are decentralized identity, decentralized social media, decentralized autonomous organizations (DAOs), and blockchain gaming, among others.
Web3 aims to revolutionize participation in a wide variety of fields, from technology to the arts. However, it needs those participants to see what its potential holds, argues @nitingaurfounder and director of @IBM Digital Asset Labs https://t.co/ThiJmisXPS
— Cointelegraph (@Cointelegraph) March 13, 2022
Web3 aims to revolutionize participation in a wide variety of fields, from technology to the arts. However, it needs those participants to see the potential it holds, says @nitingaur, founder and director of @IBM Digital Asset Labs.
Samsung is revealed as the most active investor in blockchain since September
It’s not just crypto-focused venture capital firms that are investing in blockchain; Some of the world’s biggest companies are also backing startups at the intersection of Web3 gaming, Bitcoin (BTC) infrastructure solutions, and digital asset custody. According to Blockdata, Samsung is the most active player in this space, having already invested in 13 blockchain companies. Google parent Alphabet has made strategic investments in Fireblocks, Dapper Labs, Voltage and Digital Currency Group. For its part, Morgan Stanley has invested in Figment and New York Digital Investment Group (NYDIG). And do people still think that this blockchain thing is just a fad?
Former JPMorgan and Barclays Executives Explain Why Crypto Companies Are Attractive Even in a Bear Market
There is nothing stopping cryptocurrencies, not even a bear market. Traditional finance executives continue to be drawn to careers in digital assets despite massive FUD campaign against the industry. Case in point: European crypto exchange traded fund provider 21Shares recently announced three major hires as part of its expansion into France, Germany, and the United Arab Emirates. Two of the hires were former JPMorgan and Barclays executives – you’ll want to read why they’re so excited to join an industry that has lost two-thirds of its market capitalization in the past year.
Do not miss it. Is Bitcoin a better hedge against inflation than gold?
Bitcoin has been described by many as “digital gold”, forging a new frontier in the economics of inflation hedging. If inflation is your main concern, is it better to have Bitcoin or a precious metal with a history of 5,000 years? Cointelegraph sat down with Swan Bitcoin CEO Steven Lubka to discuss whether the BTC inflation hedging thesis still has merit. You can watch the full interview below.
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