The crypto industry raised $759 million in the third quarter, almost four times the amount in the second quarter.
Original title: “Hot Spot丨Q3 Increase of Financing in the Encryption Industry by 3 Times? 》
Written by: Robert Stevens
Translation: Li Hanbo
Summary
- Outlier Ventures counts the data.
- They found that the financing amount in the third quarter was almost four times that of the second quarter.
- Why is this happening? A Russian research team told us that this is due to the new crown epidemic.
An encryption venture capital fund calculated the numbers: The encryption project raised $759 million in the third quarter of this year, almost four times that of the second quarter, when the coronavirus pandemic was having a huge impact on the market.
Outlier Ventures reported that crypto projects raised $227 million in September through 97 transactions, $278 million in August through 24 transactions, and $254 million in July through 29 transactions. In contrast, for the entire second quarter of this year, Outlier found that crypto companies had only raised $200 million.
Part of the reason to be thankful is the rise of DeFi (that is, decentralized finance, non-custodial financial agreements), which allows you to borrow cryptocurrencies or trade on decentralized exchanges.
In September, DeFi and Fintech transactions accounted for two-thirds of the total financing amount, or $157 million. They accounted for 62% of transactions in August and 72.4% in July. In contrast, they accounted for 40% of transactions throughout 2020.
All of this is an improvement over the first half of this year, when investment in encryption technology may seem like an irrational thing-the stock market has taken traders on a crazy journey (312 plunge).
According to data from the Russian research team Grom, compared with last year, in this year’s environment, the probability of crypto venture capital institutions investing in Series A financing is only half.
Grom’s Russian research team found from Crunchbase and Coindesk data that the average investment amount for this year’s A round of financing (usually the first large round of early-stage startups)-was 10.4 million USD; Blockchain companies raised an average of US$21 million.
Grom’s research examined 34 Series A investments. Private or undisclosed venture capital and crypto transactions are excluded from its research, and investment in late-stage startups is also excluded, such as Series B or Series C financing.
So why did it suddenly change? Bohdan Zapototskyi, Grom’s public relations manager, told us: “This is because of the coronavirus.”
“This is because of possible restrictions on capital flows, especially in the U.S., the capital of capital.” With the global economic downturn, “investors are less willing to take risks and invest money in high-risk investments.” He said. What is more risky than encryption technology?
But the researchers found that there are more nuances. Under uncertain circumstances, this year’s funds are relatively stable-that is, there are few crazy investments this year, because venture capitalists are playing relatively cautiously. In 2019, the difference between the largest and smallest transactions was $198.7 million.
The largest investment (so far) is the $200 million Series A financing of the crypto exchange Bithumb. In 2020, the difference is only $29.2 million-the largest is $31.2 million in Lightnet’s Series A financing.
Compared with this summer. “You might laugh at the yield of yield farming today,” Outlier investment manager Ana-Maria Yanakieva wrote in the July update. “But investors see some real potential.”
Since Yanakieva’s letter, we now know that some of these projects where investors see potential have exploded. Yanakieva must be right about one thing in the July article: These projects are interesting.
Source link: mp.weixin.qq.com
