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From the perspective of the number of companies invested, the most active venture capital funds in the DeFi field are Polychain Capital, A16z, Paradigm Capital, 1Confirmation, Bain Capital Ventures, Coinbase Ventures and KR1.
Original title: ” DeFi milestone: VC investment exceeds 500 million US dollars, it is the most involved ”
Written by: The Defiant
Decentralized Finance (DeFi)—according to its most popular measure—total value locked (TVL) continues to hit new highs. But DeFi has another lesser known milestone. The funds raised by the DeFi project from venture capital (VC) have just exceeded $500 million.
The 34 DeFi companies listed by DeFi Pulse have raised more than $500 million from more than 100 venture capital funds.
DeFi company fundraising status
2017 was a crazy year for 1CO. In fact, due to the massive participation of retail investors, the funds raised by token sales accounted for more than 50% of the current total funds. Among them, Bancor, Kyber and Loopring accounted for the largest proportion of funds.
However, since 2018, the participation of venture capital has become more and more important, which means that more and more project investment opportunities are left to institutional investors. Among the companies analyzed, only 4 companies have sold tokens after 2017: Ren, Metronome, PieDAO, and bZx. In most cases, the fundraising model adopted by these companies is different from the traditional 1CO, which only sells tokens with a lower cap for a certain number of investors.
Except for these cases, all other financing from 2018 to the present has been through private equity sales of equity or tokens to venture capital funds. Therefore, although the total amount of annual financing has declined compared with the boom period in 2017, venture capital-led financing has increased.
DeFi company’s annual fundraising situation
From the overall fundraising situation, the DeFi companies that have raised the most funds are:
- Bancor-USD 153 million (token sale, June 2017)
- Maker-$61.5 million (venture investment)
- Kyber-US$52 million (token sale, September 2017)
- Loopring-45 million USD (token sale, August 2017)
- Compound-US$33.2 million (venture investment)
Maker and Compound are the two companies that have received the most funds from venture capital, and now they both have the highest TVL among DeFi lending platforms.
Ranking of DeFi projects supported by venture capital
Lending agreements are the backbone of the entire industry, and venture capitalists themselves have confirmed that in the past two years, they believe this is by far the most important investment area.
Fundraising of each track
In terms of the number of companies invested in, the most active venture capital funds in the DeFi field are Polychain Capital, A16z, Paradigm Capital, 1Confirmation, Bain Capital Ventures, Coinbase Ventures, and KR1. They often play the role of lead investors in seed financing, paving the way for many other funds in the field.
It should be pointed out that this analysis is based on the companies currently listed on DeFi Pulse, and venture capital has invested in many DeFi companies that have not yet been included in the website. In addition, in most cases, data related to seed rounds or private token sales are private by definition, so some data may be inaccurate or incomplete.