Meet the 5 most active venture capital firms in crypto

By Stephan Roth on Tuesday 30 August 2022

FeaturesAlternative LendingDigital BankingCrypto

Venture capital money is flowing into DeFi and web3.

Meet the 5 most active venture capital firms in crypto
Image source: VentureCapital.

Crypto winter? Never heard of it. Despite bitcoin trading, 70 per cent below its all-time high venture capital (VC) firms are still busy funding projects.

The average total value of deals undertaken in the first two quarters of 2022 has hit $14.6bn, double the $7.26bn amassed in 2021, according to research from CoinTelegraph.

Not only are the total values up, but so are the number of deals. So far 1,139 have been struck this year, just shy of the 1,348 recorded in 2021. 

The only indication that crypto winter is a thing is the decline in average deal value between the first and second quarters of 2022.  Between January and March average deal value was $32.1m, $4.3m more than the numbers recorded from April to June.

In this article, AltFi brings you the most active VC firms in crypto this year:

Animoca Brands

Game software developer and venture capital company Animoca Brands have been the most active VC in 2022. 

Concluding 107 deals this year, Animoca Brands has invested heavily in NFT and web3 projects. 

In Q1 2022, 42 per cent of all individual deals were made for NFT projects – accounting for 83 per cent of all deals in the sector over the quarter. 

The second quarter this year saw Animoca Brands allocate 73 per cent of its resources to web3 projects. 

The Hong Kong-based firm's most prolific number of investments comes on the back of $358.9m raised in January. Liberty City Ventures led the funding round. 

Deals: 107

Focus: NFT and web3

 

Coinbase Ventures

Coming in second place is Coinbase Ventures (CBV). The investment arm of crypto exchange CBV aims to invest in early-stage crypto and blockchain firms.

 So far this year, the company has racked up 82 individual deals with web3 and DeFi the main focus of their activities. 

In Q1 2022, DeFi accounted for 27 per cent of its investment and in the subsequent quarter CBV dedicated 44 per cent of its resources to web3 endeavours. 

CBV has been involved in 275 investments to date. 

Deals: 82 

Focus: DeFi and web3

 

Shima Capital

San Francisco-based Shima Capital comes in third spot, with 63 individual deals wrapped up in the first two quarters of 2022.

Focusing their efforts on early stage and seed funding, Shima Capital has been most active in DeFi and web3. 

DeFi investments account for 40 per cent of Shima's Q1 operations, with 50 per cent of the firm's focus being given to web3 projects. 

On 17 August Shima debuted its Shima Capital Fund and collectively raised $200 million. Notable investors include Dragon Fly Capital and Animoca Brands. 

Deals: 63

Focus: Defi and web3 

 

GSR

Another VC based in Hong Kong, GSR specialise in providing liquidity, risk management strategies and structured products to crypto investors. 

In 2022, GSR has completed 49 deals with DeFi their major area of focus. 

In Q1 2022, 56 per cent of GSR's activities were designated to DeFi projects, with Q2 only slightly lower at 50 per cent. 

Apart from DeFi, web3 investments have also been a large part of GSR's 2022 undertakings. 

In March, GSR was one of the notable investors in Composable Finance's $32m funding round. 

Deals: 49

Focus: DeFi

 

Jump Capital

Last on our list is Jump Capital. The VC firms specialized in Series A and B expansion stage investments, with a focus on technology and software companies. 

Throughout 2022, Jump Capital concluded 45 individual investment deals with DeFi projects attracting the most attention. 

In Q1 2022, 30 per cent of Jump Capital's investments went to DeFi projects. This grew to 50 per cent in the second quarter of the year.  

Deals: 45

Focus: DeFi 

 

Based on AltFi's list, DeFi and web3 seem to be the hot spots attracting the most VC funding. With blockchain gaming, the metaverse and DeFi technology becoming more accessible, it is little wonder that these industries have received the lion's share of attention from VCs.

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