The growth of cryptocurrency as an industry has attracted substantial attention from venture firms. In the report by The Block, over 6,300 funding deals have been tracked over the past six years. Throughout the analysis, HashKey Capital pops up regularly, making them one of the biggest contributors to cryptocurrency projects.
To date, the group has invested in 321 different cryptocurrency projects. That puts HashKey Capital on even footing with Animoca Brands, Polygon Studios, Shima Capital, and others.
Overall, there is clear support from venture capitalists concerning digital assets. In addition, there is strong attention to ongoing developments and projects that can make a long-term impact. More importantly, the digital asset industry represents roughly 8% of all VC-based tech investments throughout 2022.
Despite industry setbacks and ongoing market volatility, VCs remain keen on digital assets. The potential to upend the current status quo and ongoing technological developments create an attractive situation. That momentum has resulted in over $73.8 billion invested by VCs, primarily through pre-Series A and late-stage deals.
"Venture Capital has been a major driving force behind the rapid development of digital assets. In the last six years alone, over 6,000 VC deals were closed. We believe that this trend will continue and despite the bear market, significant capital (from around the globe) will gather here and when the next cycle comes, these investments will pay off. The Block's report provides a comprehensive analysis of these deals and a reference to understanding the crypto industry over the past six years." said Deng Chao, CEO of HashKey Capital.
Like other venture capitalists, HashKey Capital pays close attention to NFTs, blockchain gaming, infrastructure, DeFi, Crypto Financial Services, and Web3. Especially the latter sector notes a healthy influx of VC funding over the past three years.
Interestingly, the findings by The Block confirm overall investments in crypto and blockchain don't always correlate with asset prices. Whether in a bull or bear market, dedicated teams will continue to build protocols, products, and services. While 2022 was a bad year for crypto prices, it also noted the most VC deals by Q3 of that year, setting a new record.
As VCs like HashKey Capital continue to double down on crypto and blockchain, the landscape has become a bit more competitive. Projects based in the United States raise the most money through the highest number of deals. However, Europe has made a strong push and continues to note healthy growth in VC deals since 2019, primarily thanks to a shift in regulatory attitude. Asia is the go-to hub for NFT and gaming projects.
Venture capitalists have also contributed to scaling solutions, providers of Bitcoin products, and multichain projects. Multichain solutions are a prominent trend in decentralized finance, where almost half of the top 100 projects work across two or more blockchains.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.