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- The report aims at connecting Web2 and Web3.
In recent years, digital assets like cryptocurrencies have grown in recognition and popularity quickly. The financing environment for digital assets has changed along with their increasing popularity and use. A prominent digital asset investment company, HashKey Capital, recently provided an outline of the funding ecosystem for digital assets.
Since its founding, HashKey Capital has managed over US$1 billion in client funds and invests primarily in blockchain technology and digital assets. Its goal is to connect Web2 and Web3 by being one of the biggest crypto funds based in Asia and being recognized for being one of Ethereum’s first corporate investors.
The research comprises an extensive database of 6,380 venture capital funding deals recorded by The Block in the blockchain industry over the last six years and offers the most thorough, fact-based, and in-depth assessment of the crypto venture funding landscape to date. HashKey Capital, which has currently made 321 investments in the sector, was identified as one of the top sponsors of cryptocurrency initiatives during the course of the report.
The massive potential that VCs see in the digital asset market is one of the report’s main findings. Although the digital asset market is still in its infancy, it is receiving a lot of attention and will make up 8% of all VC investments made in the larger technology sector in 2022.
In light of the disruptive potential and likelihood of a technology revolution, venture capitalists (VCs) have been drawn to the digital asset market. As a result, they have invested $73.4 billion through 2,668 seed and pre-Series rounds in the sector.
The study makes it abundantly evident that investments in digital assets are at a high level, and this is particularly true for the NFT/Gaming sector, which accounted for 1,364 agreements, or almost 21% of the total. The great bulk of the transactions (87%) took place after 2021, which helped NFT/Gaming surpass all other segments of the cryptocurrency market since the first three months of that year.
The Web3 sector is another quickly expanding market, according to the research, where the number of funding deals has continuously increased over the last three years.
The report’s conclusions include the observation that investors’ interest in digital assets seems to be a lagging signal of the sector’s general health.
In the report’s regional analysis of investors’ hunger for digital assets, it is discovered that North America is the major source of worldwide venture capital investments. 2,423 agreements were raised by US-based projects, making up about $38 billion of the total amount raised in the industry. This is similar to how the U.S. dominates international venture capital investments.
The paper also discusses the growth of Ethereum scaling solutions like Polygon, Optimism, Offchain Labs, and Starkware, which have attracted about $1 billion in funding over the last six years.
In summation, HashKey Capital provides a thorough analysis of the current system and potential developments in the financing of digital assets. The digital asset funding landscape is constantly evolving and is expected to shift towards more regulated and compliant fundraising methods in the future.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
