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Asia Falls Behind as US Takes the Lead in Crypto VC Deals

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The US is the worldwide chief in blockchain-related funding offers, with almost 3 times the greenback quantity transacted in offers there as in Europe throughout the third quarter of this yr. In the meantime, Asia has for the primary time fallen behind the US by the variety of crypto startups that raised capital, a brand new report has discovered.

Based on the report, prepared by enterprise intelligence agency CB Insights, the quantity of capital raised by US-based blockchain-focused firms has by no means been larger, after having risen for 5 quarters in a row.

“US blockchain/crypto funding {dollars} hit almost USD 3bn in Q3’21, rising for the fifth consecutive quarter and reaching an all-time quarterly excessive,” the report stated.

This massive quantity of capital raised within the US over the previous quarter represents a rise of greater than 11x from the identical quarter final yr, when simply USD 263m was raised, the report identified. Additional, final quarter’s excessive quantity got here after robust progress in each the primary and second quarter of 2021, the information confirmed.

US blockchain funding in Q3 2021:

In the meantime, the USD 3bn of capital that was transacted in offers related to US-based crypto firms additionally dwarfed what was seen in different areas of the world for the quarter.

The entire of Asia, which incorporates China, India, and crypto sizzling spots like South Korea and Japan, noticed offers price simply USD 1.4bn throughout the quarter, making up lower than half the worth of the offers within the US.

Europe, on its finish, was even additional behind, with USD 1.1bn price of offers being closed within the crypto house within the third quarter – simply over one-third of the greenback worth of the US offers.

Wanting on the variety of offers additionally painted an identical image, with 137 offers being closed within the quarter within the US, 65 in Asia, and 51 in Europe.

The quantity and greenback worth of crypto-related offers in Q3 2021:

The report stated that Coinbase Ventures was probably the most lively investor when it comes to the variety of firms receiving backing from it.

Throughout the third quarter, 24 firms obtained backing from Coinbase’s enterprise arm, whereas China-based LD Capital and Hong Kong-based Animoca Manufacturers backed 11 firms every.

The report additional added the whole variety of unicorns – that means startups price greater than USD 1bn – within the crypto house has now reached 31, after 12 new unicorns have been added throughout the third quarter of this yr.

“Greater than half of recent unicorns in Q3’21 got here from the US. The US makes up about half of the whole unicorn rely, with 15,” the report stated.

Commenting on the report’s findings to Bloomberg, Chris Bendsten, an analyst at CB Insights, stated that the low variety of offers in Asia – and the corresponding greenback worth of these offers – is probably going as a result of ban on most issues associated to crypto in China.

“We’ve principally seen no offers in China,” Bendsten said, noting that exercise is as an alternative centered round crypto firms in Hong Kong, India, and Singapore.

However though China has determined to close itself out of the brand new blockchain and crypto sector, the CB Insights analyst stated that international progress within the house is way from slowing down.

The fourth quarter of 2021 is already set to develop into the largest ever for crypto startup investing, the analyst was quoted as saying.
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