Increased Investments in Blockchain Startups

Capital investments in blockchain startups increased by nearly 600 percent in 2021 to approach $15 billion.

In 2021, the growth of cryptocurrencies and blockchain technology has increased. As venture capital investors continued to spend more money, there was a serious inflow of money into the sector.

Nearly $15 Billion Invested in the Cryptocurrency Industry in 2021

According to data from GlobalData, venture capital investment in blockchain technology during 2021 increased by over 600 percent from the $2.1 billion recorded in 2020 to $14.8 billion.

VC funding to blockchain. Source: GlobalData

Investments in blockchain were topped mainly in North America with $6.8 billion, followed by Latin America with $3.4 billion and Europe with $3 billion. In other parts of the world, venture capitalists increased their investments in the sector. Investors invested $1.6 billion in Asia Pacific and $0.44 billion in the Middle East.

Investments in the blockchain industry increased in 2021 even though the industry is still seen as in its infancy. However, both investors and consumers aim to reap the benefits of blockchain technology as they integrate into companies’ software solutions.