The Biggest Fundraisers in Crypto History

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The Biggest Fundraisers in Crypto History
cryptocurrencies

According to the Crypto Fundraising Report H1 2022, $30.3 billion was raised by cryptocurrency startups in the first half of 2022. In 2021, even though there was a general market downturn in cryptocurrency, cryptocurrency received $30 billion in funding.

Clearly, invest and trade in cryptocurrency has become very popular.

When it comes to crypto funding, more and more investors are getting into the foray. Let’s take a look at some of the biggest fundraisers in cryptocurrency history.

Circle

Circle Internet Financial raised $400 million in May 2021 with investments from Marshall Wace LLP, BlackRock, Fin Capital and Fidelity. The previous valuation of Circle, the main developer of the USDC stablecoin, was estimated at around $3 billion. To date, Circle has facilitated over 100 million transactions by over 1,000 businesses and 10 million customers.

Circle had also partnered with Visa to allow people to take advantage of the combined strength of the USDC stablecoin and Visa’s digital payment platform.

bitmain

Bitmain, the cryptocurrency mining solutions provider, raised nearly $422 million in a funding round in 2018. Some of the notable investors included Pavilion Capital, Palace Investment Company, Lioness Capital, Jumbo Sheen Group , Bluebell (Asia) and Crimson Capital China.

Bitmain is also the largest Bitcoin mining hardware manufacturer in the world. It also owns Antpool, a very popular Bitcoin mining pool. Antpool has approximately 13% of the computing power of the Antpool network. Shortly after receiving the $422 million in funding, Bitmain filed for an IPO. This was for the Hong Kong Stock Exchange in September 2018. However, the the sale failed due to the bitcoin crash at that time.

BlockFi

BlockFi raised $350 million in March 2021 with investments from Tiger Global, Pomp Investments, Susquehanna Govt. Products and Bain Capital Ventures. BlockFi’s previous valuation was estimated at $435 million, which rose to $3 billion after the funding round.

BlockFi was launched in 2017 and is one of the largest cryptocurrency platforms in the world. It offers a wide range of products in many categories, including low-interest loans and credit cards offering cryptocurrency rewards. The platform has over $10 billion in assets and over a million users.

Solana Laboratories

In June 2021, Solana Labs raised $314 million in a funding round. Investments came from VC Andreessen Horowitz, CMS Holdings, Alameda Research, Polychain Capital and Blockchange Ventures. In return, investors received SOL, Solana’s native token, which has a current value of approximately $43.88 for each SOL. Over 19 billion transactions have been facilitated by Solana to date.

Dapper Laboratories

Dapper Labs, creators of NBA Top Shot, the fantasy basketball game raised over $305 million in March 2021 from a group of around 30 investors. Prominent investors include Kevin Durant, Michael Jordan, Andreessen Horowitz and Coatue Management. Some of Dapper Labs’ previous work includes CryptoKitties, the very popular reproducible collectibles on Ethereum.

Dapper Labs has also been instrumental in popularizing NFTs. NBA Top Shot has over $500 million in sales with nearly 800,000 registered users. More than 338,000 of these users hold at least one NFT. One of the most expensive NFTs ever sold on the platform was the Lebron James jump which was sold for $208,000.

Bakkt

Cryptocurrency platform Bakkt raised $300 million in 2020 in its second round of funding. By 2018, it had secured $182 million in funding. Notable investors included PayU, BCG Digital Ventures and ICE (Intercontinental Exchange). Bakkt’s vision is to make trading cryptocurrency as easy as trading stocks.

At its core, Bakkt is like a daycare service. It deals in large amounts of Bitcoins for institutional investors. Bakkt is owned by ICE which offers a Bakkt-branded Bitcoin futures product. It allows traders to bet on rising or falling Bitcoin prices. The Bitcoins used for these transactions are all stored in the custody of Bakkt. In March 2021, Bakkt obtained a BitLicense allowing it to operate in New York, offering its custody services to a wider audience. The company has also rolled out the Bakkt app for convenience for its users.

Coinbase

Coinbase raised $300 million in Series E funding in 2018 with investments from Andreessen Horowitz, Tiger Global Management, Polychain Capital, and Govt. of the Singapore Investment Company. Prior to the funding round, the company was valued at $1.71 billion, which rose to $8.04 billion after the fundraising.

Coinbase is one of the most popular cryptocurrency exchanges in the United States. It currently supports over 100 cryptocurrencies including Bitcoin and Ethereum. The company has over $256 billion in assets and has over 98 million users.

bitso

Bitso is a Mexican cryptocurrency trading platform that raised nearly $250 million in funding in 2021. Bitso has received investments from numerous investors, including Pantera Capital, QED, Valor Capital Group, Paradigm, Tiger Global, and Coatue . Launched in 2014, it is one of the largest cryptocurrency platforms in Latin America. It is also the first FinTech in Mexico to reach a $1 billion valuation.

Bitso has over 2 million users in Mexico, Brazil and Argentina. There is also the Bitso app allowing users to buy or sell Bitcoins and many other cryptocurrencies. The company claims that in Mexico it has 95% of the crypto market share and nearly 60% in Argentina.

Ripple Labs

As part of the Series C funding, Ripple Labs raised $200 million in funding in October 2020. Notable investors included Tetragon Financial Group, 10X Capital, Transform Capital, and SBI Holdings.

Ripple controls a massive amount of XRP, the third most valuable cryptocurrency in the world. Ripple’s products, primarily XRP, are used for various activities, such as remittances, asset exchange, and payment settlement internationally. Unlike Bitcoin, XRP is pre-mined and the mining process is much less complicated than mining Bitcoin. When XRP was launched, one billion tokens were already pre-mined. In contrast, Bitcoin is capped at 21 million, which means that at any given time there can only be 21 million Bitcoins in the market.

Summary

Cryptocurrency start-ups are becoming increasingly popular. Their popularity is evidenced by the fact that they receive millions of dollars in funding every year. Cryptocurrency is a high-risk but also highly rewarding investment. Cautious investments could prove very profitable for investors.

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