Report: Blockchain and Crypto VC Investments Grew Almost Tenfold During 2021 in Latam

A caller study issued by LAVCA, the Association for Private Capital Investment successful Latin America, has recovered that the task superior (VC) concern successful the portion has grown immensely compared to the erstwhile year’s numbers. In general, the portion registered investments of much than $15 billion, much than 3 times the magnitude registered successful 2020. However, crypto and blockchain investments grew astir tenfold.

Crypto Outpaces Conventional VC Investments successful Latam

A caller report issued by LAVCA, the Association for Private Capital Investment successful Latin America, details the maturation of the task superior (VC) question successful the portion and highlights the involvement that these companies took successful crypto successful 2021. The study recovered that the portion experienced notable maturation erstwhile it comes to task superior investments, much than tripling the numbers registered the erstwhile year. In 2020, LAVCA registered $4.14 cardinal successful VC investments, successful the midst of the coronavirus pandemic. Last year, this influx reached $15.7 billion.

Investments made successful defi, blockchain, and cryptocurrency sectors vastly outgrew the concern maturation rates successful much accepted sectors. According to numbers registered successful the report, these investments reached $653 cardinal successful 2021, increasing astir 10 times much than the fig that the assemblage registered successful 2020 ($68 million), supported by the rising involvement of consumers successful these alternate concern vehicles.

However, the fintech assemblage experienced the biggest volume, registering $6.1 cardinal invested crossed 258 transactions, increasing astir 4 times arsenic compared to 2020.

Large Growth, Few Companies

While the maturation that this assemblage experienced successful Latam past twelvemonth was explosive, it was concentrated successful a fewer companies that power the cryptocurrency manufacture connected the continent. Most of the $653 cardinal concern was allocated successful backing rounds for 4 companies.

Mercado Bitcoin, 1 of the biggest cryptocurrency exchanges successful the region, registered an allocation of $290 cardinal crossed 3 backing rounds. Bitso, a Mexico-based cryptocurrency platform, received $250 cardinal successful investments. The different 2 large platforms VCs invested successful were Ripio, an Argentinian speech that received $50 cardinal successful a backing circular led by DCG, and Lemon Cash, different Argentinian exchange, with $17.3 million.

However, determination are much than user exchanges and trading platforms erstwhile it comes to crypto concern successful the region. The study states that determination person been different investments directed to the B2B (business-to-business) services assemblage during these archetypal months of 2022. Among these are Liqi, with $5.5 cardinal successful investments, Gavea Marketplace with $5 million, and Agrotoken, besides with $5 million.

What bash you deliberation astir the maturation successful VC cryptocurrency-based concern successful Latam? Tell america successful the comments conception below.

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