Cryptocurrency, Featured

Venture Capital Firms Ready To Spend More On Cryptocurrency, Blockchain

Digital currencies are witnessing an increasing popularity with more investors being allured towards them than ever before. Apparently, several traditional venture capital businesses have started to fund cryptocurrency and Blockchain firms.

Many venture capital businesses are going for a portfolio expansion mode. These traditional VC firms have started investing in specialist Blockchain startup businesses and funds lately.

A report shared by Crypto Finance Conference ranked these firms based on their number of investments in the Blockchain world. It was observed that the venture capital firms were slightly ahead of those traditional VC firms that had a substantial amount of investments on cryptocurrency assets.

Prominent VC firms such as Blockchain Capital and Andreessen Horowitz feature among the top ten firms that invest in the Blockchain space. A traditional venture capitalist firm called Boost VC grabbed the third rank on this list. The report also indicates that about 30 percent of the entire investments of this company is based on cryptocurrency.

There has been an upward trend in the number of traditional VC firms that are investing in the world of Blockchain in the recent times. The trend hints at a growing trust in the cryptocurrency and Blockchain space.

Many VC firms appear to be convinced about having a diverse portfolio, so that, they are more likely to get stable returns from their investments made.

Possible Reasons For Increase In Cryptocurrency, Blockchain Investments

The report also seems to suggest that these VC firms hope to gain more returns from their investments in the Blockchain and cryptocurrency space. Alternatively, they could perceive that the field has become more secure and less risky now.

Another possible reason for the increase in cryptocurrency investments could be a majority of the ICOs which have targeted private investments instead of going public. BCFocus reported that Telegram, a noted messaging service, avoided their public offering in order to gather 17 million USD from private investors.

However, such practices are not in sync with the cryptocurrency and decentralization principles. The Blockchain space can become more centralized due to private funding.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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