Crypto VC is back with a vengeance

by Arthur · August 19, 2022

You’ve no doubt heard the expression, follow the money. Well, if you do that in the world of venture capital, you will be led directly to crypto, blockchain and digital assets. After a modest summer in venture funding, two massive increases worth a combined $500 million were announced this week. That’s $500 million VCs are allocating to crypto-focused startups at the intersection of Web3, blockchain infrastructure, and decentralized communities.

If you think financing deals have stalled in the middle of the bear market, think again. I mentioned “daylight saving time” at the beginning, but that doesn’t mean funding has stopped. There are actually so many deals that I’ve had to start a separate series called the VC Roundup just to keep track. Data from Cointelegraph Research also shows that the financing agreements in the 2nd quarter were as large as the first quarter in dollars.

This week’s Crypto Biz looks at the latest funding news from the blockchain world.

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CoinFund Launches $300M Early Stage Web3 Venture Fund

Venture firm CoinFund has launched a new investment fund dedicated to all things crypto. The recently launched CoinFund Ventures 1 will invest $300 million in early-stage companies innovating in the blockchain arena, with a primary focus on Web3. CoinFund raised $83 million during the bull market of 2021. The latest deal is more than three times that amount — and it was raised during the depths of crypto winter. It tells us that venture capitalists probably believe that the market has already bottomed or is about to.

Blockchain VC Shima Capital Debuts $200M Web3 Fund

Shima Capital, a venture firm founded by hedge fund investor Yida Gao, has debuted a $200 million investment fund targeting startups from across the blockchain ecosystem. Shima Capital Fund I, which is backed by Dragonfly Capital, Animoca Brands and OKX, is set to distribute up to $2 million in pre-funding to promising startups and innovators. Some of the most promising topics Shima has identified include decentralized identity, decentralized social media, decentralized autonomous organizations (DAOs), and blockchain games.

Web3 aims to revolutionize participation in a wide range of fields, from technology to art. However, it needs the participants to see what the potential is, he claims @nitingaurfounder and director of @IBM Digital Asset Labs https://t.co/ThiJmisXPS

— Cointelegraph (@Cointelegraph) March 13, 2022

Samsung revealed as the most active investor in blockchain since September

It’s not just crypto-focused VCs that are invested in blockchain; some of the world’s largest companies also support startups at the intersection of Web3 games, Bitcoin (BTC) infrastructure solutions and digital assets. According to Blockdata, Samsung is the most active player in this space, having invested in 13 blockchain companies already. Google parent Alphabet has made strategic investments in Fireblocks, Dapper Labs, Voltage and Digital Currency Group. Meanwhile, Morgan Stanley has weighed in on Figment and New York Digital Investment Group (NYDIG). And people still think this blockchain thing is just a fad?

Former JPMorgan, Barclays executives on why crypto jobs are attractive even in bear markets

There is no stopping crypto – not even a bear market. Executives from traditional finance are still being lured into careers in digital assets despite the massive R&D campaign against the industry. Case in point: European crypto exchange-traded fund provider 21Shares recently announced three significant hires as part of its expansion into France, Germany and the United Arab Emirates. Two of the employees were former executives from JPMorgan and Barclays – you’ll want to read about why they’re so excited to join an industry that has lost two-thirds of its market value in the past year.

Don’t miss it! Is Bitcoin a better inflation hedge than gold?

Bitcoin has been described by many as “digital gold”, creating a new frontier in inflation-proof economics. If inflation is your primary concern, is it better to hold Bitcoin or a precious metal with a 5,000-year track record? Cointelegraph sat down with Swan Bitcoin CEO Steven Lubka to discuss whether BTC’s inflation-hedging mission still has merit. You can watch the full interview below.