2021 Q1 Encryption Market Investment and Financing Report: The amount of financing has increased sharply, and many data have reached record highs

In the first quarter of 2021, the encryption market ushered in explosive growth. DeFi, NFT and other popular tracks ushered in many heavy financing events. More and more mainstream investment institutions such as the Singapore Government Investment Fund, DST Global, and Tiger Global began to deploy encryption In the market, IDO has emerged as a financing option for many encryption projects.

Against the aforementioned background, Chain Catcher sorted out and analyzed the investment and financing events in the encryption market in the first quarter of this year, and summarized the trends and information points, as follows:

As the bull market in the encryption market continues, the activity of investment institutions is also rapidly increasing, which further boosts the excitement in the encryption market. According to the incomplete statistics of Chain Catcher, there were 255 investment and financing events (excluding IDO) in the global encryption market in the first quarter of this year, more than three times that of the same period last year.

In terms of investment amount, the investment and financing events in the first quarter of this year involved more than 3.8 billion US dollars. Among them, the projects with the highest financing amount were Dapper Labs, Blockchain.com, BlockFi, NYDIG, and BitPanda, with financing amounts of 555 million US dollars and 420 million US dollars respectively. US$, US$350 million, US$200 million and US$170 million, all with valuations exceeding US$1 billion.

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In terms of investment institutions, the top three investment institutions in the first quarter of this year were GBV (Genesis Block Ventures), AU21 Capital, and NGC Ventures, with 35, 29, and 27 deals respectively.

As a supplement to institutional financing, the IDO financing method has also been favored by more and more project parties this year. More than 70 projects on the mainstream IDO platform raised funds in the first quarter of this year, including Radicle, Mask Network and other projects through IDO Fundraising exceeded $20 million.

The following is the specific combing and interpretation of the chain catcher's investment and financing situation in the first quarter of this year.

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According to the incomplete statistics of Chain Catcher, in the first quarter of this year, there were 255 investment and financing events in the global encryption market, involving more than 3.8 billion US dollars, and the number of institutions participating in financing exceeded 370, all of which were historical highs in a single quarter. In contrast, according to statistics from PANews, a total of 434 financing incidents occurred in the encryption market in 2020, involving an amount of US$3.566 billion.

Dividing the time into weeks, the number of financing events has risen sharply almost every week since the beginning of the year, from about 10 a week at the beginning to about 30 a week at the end of March, reflecting that investment institutions are increasingly interested in the encryption market. The stronger the interest.

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From the perspective of financing tracks, the popular financing tracks in the first quarter of this year are DeFi, NFT, Polkadot ecology, encryption infrastructure, trading platforms, etc., among which the financing events of the DeFi concept accounted for more than half of the total financing amount.

From the perspective of financing types, token financing accounts for the majority of all financing events, while equity financing accounts for a minority.

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It is understood that GBV is an investment institution of Genesis Block. The company was established in 2017 and mainly operates cryptocurrency over-the-counter trading business in Hong Kong. It has received investment from Alameda Research and acquired OMG Network in December last year. Since then, it has begun to invest heavily in the primary market. project.

AU21 Capital was founded by well-known KOL Bao Erye and former Huobi Global Vice President Kenzi Wan. Recently, it has made a lot of deployments in the Polkadot ecosystem.

At the same time, a large number of cryptocurrency exchanges have also accelerated their investment layout. Nearly half of the investment events have exchanges behind them. Among them, exchanges with a large number of investments include Coinbase, Binance, OKEx, gate.io, ZB Wait.

News | Report: The value of the North American financial technology blockchain market is expected to exceed US$5.2 billion in 2027: According to a market research report released by Inkwood Research, the North American financial technology (Fintech) blockchain market was valued at nearly US$203 million in 2018 , is expected to reach approximately USD 5.248 billion by 2027, and its CAGR (Compound Annual Growth Rate) is projected to be 42.87% during the forecast period 2019-2027. (Industry Today)[2019/10/11]

It is worth noting that many traditional financial giants also appeared in the financing of many top encryption projects, such as the Singapore Government Investment Fund, DST Global, Tiger Global, Soros Fund, Morgan Stanley, etc., a16z, Google Ventures, etc. There are also many shots.

In the first quarter of this year, the number of large-amount financing events in the encryption market also increased significantly, and many investment institutions began to take heavy positions in top encryption projects to improve the ecological layout. According to the incomplete statistics of Chain Catcher, there are only 37 financings with a single amount of more than 20 million US dollars, a total of 16 financings with a single amount of more than 50 million US dollars, and 9 financings with a single amount of more than 100 million yuan. Among them, Blockchain.com, Dapper Labs has completed two consecutive financings of over US$100 million.

14 crypto companies with more than $50 million in funding

These large investments reflect that the business models and development prospects of more and more encryption companies have been recognized by mainstream investment institutions. At the same time, the pattern of various tracks in the encryption industry has initially formed, and the support of investment institutions has declined to a broader market. space.

More specifically, the five projects with the highest financing amount are Dapper Labs, Blockchain.com, BlockFi, NYDIG, and BitPanda. The valuations both exceeded US$1 billion. In addition, the valuation of Chainalysis also exceeded US$1 billion, and they all became unicorn companies in the encryption market. Chain Catcher will briefly introduce these companies below.

Founded in February 2018, Dapper Labs is a blockchain game developer that aims to bring the advantages of decentralization to 1 billion consumers through the power of games. The company is also the developer of well-known games such as NBA TOP SHOT and Cryptokitties. It officially launched the Flow public chain at the beginning of this year, with a current valuation of $2.6 billion.

Blockchain.com was established in 2011. Its main businesses include block browsers, cryptocurrency wallets, exchanges, etc. It also provides institutions with a series of solutions such as asset custody and lending. Its venture capital department Blockchain Ventures has invested in Securitize, Aave, Dozens of projects such as Near. In its latest funding round, Blockchain.com was valued at $5.2 billion.

Founded in 2014, Chainalysis is an on-chain data analysis company that tracks cryptocurrencies. Its main business is to provide bitcoin transaction analysis software for cryptocurrency exchanges, international law enforcement agencies, and other customers to help them comply with compliance requirements and assess risks and identify illegal activity. According to public data, Chainalysis currently has more than 50 clients with a valuation of more than $2 billion.

Founded in 2017, BlockFi focuses on providing lending services for the encrypted market, and also provides encrypted asset transaction execution services for retail investors and institutions. According to reports, the BlockFi platform currently manages more than $15 billion in assets, and the number of BlockFi users has grown from 10,000 to 225,000 since the end of 2019. The company currently has monthly revenue of more than $50 million and a valuation of $3 billion.

Founded in 2014, Bitpanda is an Austria-based cryptocurrency broker and a digital asset service provider registered with the Austrian Financial Market Authority and the French Chamber of Financial Markets. Second edition) license. It is understood that Bitpanda currently has more than 2 million total users, supports more than 50 digital assets, and has a valuation of US$1.2 billion.

A special phenomenon in the crypto financing market this year is that IDO financing has become the choice of more and more projects, that is, directly raising funds from the public on platforms such as Balancer, Polkastarter, and DAO Maker. Since most of the tokens participating in IDO can obtain multiple returns, investors in the encryption market are currently very enthusiastic about participating in IDO.

According to the incomplete statistics of Chain Catcher, in the first quarter of this year, at least 70 projects conducted IDO on different platforms. Among them, Balancer has the highest participation amount and the lowest participation threshold. At present, the total financing amount of each platform exceeds 170 million US dollars.

IDO is actually equivalent to the DeFi version of the project’s public offering solution, allowing the project to directly raise funds from the community, especially enabling early project supporters to obtain more financial returns. At the same time, the IDO platform can review projects and help investors select high-quality projects. project, so it has become an important infrastructure for the encryption market.

Among the IDO projects launched in the first quarter of this year, Illuvium, Radicle, Mask Network and other projects have the highest financing amount, all reaching more than 20 million US dollars.

Overall, the investment and financing events in the encryption market in the first quarter of this year created a record high, and many innovative emerging encryption companies were born as a result, injecting more confidence and resources into the encryption market, but market bubbles and risks may also be It has been magnified invisibly, and many start-up encryption companies have easily obtained valuations of tens of millions of dollars, which has become a lingering worry for the entire market.

Author | Alyson, Echo

Editor | Gong Quanyu

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