Blockchain startups continue shattering funding records. Among the 12 largest funding rounds ever completed in this emerging market, 10 occurred in 2021 alone—raising $3.9 billion with five months remaining. Just in the past two months, four mega-rounds accounted for nearly half this amount.
The FTX Phenomenon
The pinnacle of this investment surge came from Antigua-registered crypto derivatives exchange FTX, securing the industry's largest-ever private round at $900 million last month. This doubled the previous record held by digital infrastructure provider Circle, valuing the two-year-old exchange at $18 billion. The round also doubled the net worth of FTX founder Sam Bankman-Fried—now the world's wealthiest known crypto billionaire—from $8.3 billion to $16.2 billion.
Top U.S. Investors
According to PitchBook data (as of July 29), leading U.S. investors in the space include:
- Digital Currency Group (DCG): 111 startup investments
- Coinbase Ventures: 79
- Pantera Capital: 74
- Blockchain Capital: 68
- Andreessen Horowitz (a16z): 58
- Polychain Capital: 51
With crypto markets regaining bullish momentum, expect more mega-funding rounds ahead. Below are cryptocurrency's 12 largest funding deals (excluding companies primarily operating in non-crypto verticals):
The Funding Heavyweights
FTX: $900 Million
- Date: July 20, 2021
- Round: Series B
- Investors: Paradigm, Sequoia Capital, Ribbit Capital, Third Point, Lightspeed Venture Partners, Coinbase Ventures, SoftBank, Sino Global Capital, Circle
- Valuation: $18B (from $1.2B)
As a relative newcomer launching in May 2019, FTX differentiated itself through advanced trading features—options, futures, volatility products, and leveraged tokens—processing over $10B daily. Revenue grew 10x this year and 75x since its Series A.
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Circle: $440 Million
- Date: May 28, 2021
- Investors: Fidelity, Marshall Wace, DCG, FTX, Breyer Capital
- Valuation: N/A (previously $3B)
Known for its USDC stablecoin (3,400% growth in 2021), Circle supports $785B+ in on-chain transactions. Its SPAC merger at $4.5B valuation is pending.
Bitmain: $422 Million
- Date: August 7, 2018
- Round: Series B1
- Valuation: $15B (from $12B)
The Beijing-based bitcoin mining hardware leader postponed its 2018 Hong Kong IPO amid crypto winter.
Emerging Contenders
| Company | Amount | Date | Key Investors |
|---|---|---|---|
| Ledger | $380M | June 2021 | 10T, Cathay Innovation, DCG |
| BlockFi | $350M | March 2021 | Bain Capital, Tiger Global |
| Solana Labs | $314M | June 2021 | a16z, Polychain, Alameda |
FAQ Section
Q: Why did FTX's valuation jump so dramatically?
A: FTX combined institutional-grade products with retail accessibility, capturing market share during the 2021 derivatives boom.
Q: Are stablecoins like USDC safe investments?
A: While less volatile than other cryptos, they carry regulatory and counterparty risks—always research the issuer's reserves.
Q: What's driving VC interest in crypto startups?
A: Institutional adoption, DeFi innovation, and blockchain's potential to redefine financial infrastructure.
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Final Thoughts
The 2021 funding frenzy underscores crypto's maturation—from niche technology to mainstream financial infrastructure. While valuations fluctuate, the sector's fundamental growth trajectory remains intact. Investors should focus on projects with:
- Clear utility
- Scalable technology
- Regulatory compliance
As the space evolves, we'll likely see more traditional finance players entering through strategic investments like those seen with Circle and FTX.
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