2017 is often referred to as the year of the ICO. Yet a recent joint report from Crypto Valley and PWC found that ICO issuance in 2018 already exceeds that of 2017. A very similar trend is taking place with regards to more traditional venture-style investment in blockchain companies.
The sheer number of crypto funds, including hedge funds and venture capital, continues to increase at a record rate. 147 new crypto funds are expected to launch in 2018. In addition, traditional venture capital firms, particularly those focused on fintech and technology, are continuing to add blockchain and cryptocurrency companies to their portfolios. For example, Andreessen Horowitz, a multi-billion dollar Silicon Valley VC, recently announced a new $300 million crypto-focused fund.
Though the venture capital industry that has evolved around blockchain is changing and growing rapidly, there are some firms that stand out. Some are traditional VCs like Andreessen Horowitz and Sequoia Capital. Others are digital asset funds exclusively focused on investing in blockchain and cryptocurrency startups.
Below is look at the 20 most influential venture capital firms investing in blockchain companies, according to a recent report from Crypto Fund Research.
Top 20 Blockchain VCs:
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Digital Currency Group
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Pantera Capital
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Blockchain Capital
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Andreessen Horowitz
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Node Capital
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Boost VC
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IDG Capital
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Draper Associates
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Ceyuan Ventures
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Lightspeed Venture Partners
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Techstars
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RRE Ventures
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Union Square Ventures
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General Catalyst
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Liberty City Ventures
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500 Startups
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Danhua Capital (DHVC)
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Kindred Ventures
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Sequoia Capital
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Future Perfect Ventures
Full list of top 50 blockchain VCs
There are several interesting takeaways from the study:
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36% of these VCs invest exclusively in crypto/blockchain companies or have at least one fund devoted exclusively to these digital assets.
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The top 50 VCs are rapidly increasing their investment in blockchain companies. Already in 2018, they have invested more than they did in the previous two years combined. This comes despite cryptocurrency prices which have declined by roughly 2/3 from their late 2017 highs.
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While it’s certainly a competitive market, top blockchain VCs often coinvest. Blockchain startups like Abra, Basis, Binance, BlockCypher, Blockstream, Gem, and Origin have all received funding from four or more of the top 50 blockchain venture capital firms.
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Though many blockchain startups have funded via ICO, the top 50 blockchain VCs typically make seed investments. Seed-stage investments accounted for more than half of all funding rounds made by the top 50.
The full study on top venture capital firms investing in blockchain is available here
