Data Source: Footprint Analytics

This post is part of our Year in Review series.

2021 Blockchain Fundingoverview

overview

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Footprint Analytics - Monthly Investment Trend in 2021

It shows that in 2021, the blockchain industry financing market will be very active, and capital will flow into the blockchain field at an unprecedented speed. This trend will become more obvious after March.

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• Looking at blockchain financing in 2021, we can summarize the following characteristics:

• Rapid growth in capital investment

• Investment areas are more subdivided

Short financing cycle

The number of seed round financing projects has increased dramatically

In this article, Footprint Analytics analyzes the industry layout of financing subdivisions, overall financing rounds, investment institutions, etc., in order to show the overall picture of global blockchain industry financing and provide industry reference for everyone.

Compared with the situation where DeFi and CeFi are the main financing areas in 2020, it can be seen from the investment amount in various fields that in 2021, capital will still tend to the CeFi field with a complete structure and mature development, followed by the NFT field and the infrastructure field.

Footprint Analytics - Monthly Funding Amount of Each Area in 2021

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Industrial Distribution2021, the DeFi industry is still a key investment area for capital, and more than 30% are DeFi-related industries. 19% are related to NFT, and 17% are related to infrastructure. In addition, other segments have also emerged.

Footprint Analytics - Funding Categories by TVL in 2021

Footprint Analytics - Funding Categories by TVL in 2020

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The distribution is more concentrated in the fields of DeFi, CeFi and infrastructure. It can be seen that the blockchain world in 2021 will be greatly enriched.

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Footprint Analytics - Funding Rounds in 2021

From the perspective of financing rounds, more than half of the seed rounds of financing are followed by A round of financing and strategic financing.image description

In the 2021 funding round

And there are very few projects that have reached the round of financing above the B round. At present, most of the companies that have entered the B round of financing are distributed in the relatively stable DeFi and CeFi fields. A project needs strong vitality to develop rapidly.

financing institution

financing institution

Footprint Analytics - Ranking of the project number by investment institutions

Among financing institutions, AU21 ranks first, with a total of 119 investments in 2021. Coinbase and NGC followed with 102 and 91 respectively.image description

It can be seen from the table

, the number of investments in AU21 is far ahead. AU21 Capital is a blockchain venture capital company located in San Francisco. The institution has been working since June, mainly focusing on DeFi, and also pays great attention to the NFT field. The investment is concentrated in the seed round.

The investment portfolio of NGC Ventures, a financial investment platform initiated by key members of the NEO community and senior investors in traditional capital markets, also focuses on DeFi and infrastructure.

From this point of view, the investment portfolios of leading investment institutions are mostly safe, mainly DeFi and blockchain infrastructure, and also have some involvement in NFT, but less in other emerging fields such as Web 3.

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Analysis of 2021 blockchain financing sub-tracks

• This article will analyze the five tracks from the three perspectives of amount, round and project

• The top three of the year:

• The CeFi track has the highest total financing

The DeFi track has attracted the most investors

Financing situation of CeFi track

Footprint Analytics - CeFi Fundraising Amount

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Footprint Analytics - CeFi Fundraising Rounds

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Footprint Analytics - Amount of Funding for Each Project in CeFi

In terms of financing rounds, compared with the status quo of the overall blockchain seed round financing accounting for 61.9%, the financing process in the CeFi field is clearly ahead, and the number of A-round financing and seed round financing is evenly matched.

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DeFi track financing situation

Footprint Analytics - DeFi Fundraising Amount

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Footprint Analytics - DeFi Fundraising Rounds

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Footprint Analytics - Amount of Funding for Each Project in DeFi

In terms of financing rounds, seed rounds are still dominant, which is inseparable from the frequent emergence of innovative projects in the DeFi field and the rapid iteration of technology updates.

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NFT Track Financing Situation

Footprint Analytics - NFT Fundraising Amount

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Footprint Analytics - NFT Fundraising Rounds

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Footprint Analytics - Amount of Funding for Each Project in NFT

In terms of financing rounds, since the history of NFT is still very short, seed round financing accounts for the vast majority, which makes us look forward to the future vitality of the NFT field and hope that NFT can bring us more surprises.

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Overview of Infrastructure Financing

Footprint Analytics - Infrastructure Fundraising Amount

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Footprint Analytics - Infrastructure Fundraising Rounds

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Footprint Analytics - Amount of Funding for Each Project in Infrastructure

In terms of financing rounds, the seed round and A round of financing are still dominant. At present, the blockchain infrastructure is in the stage of large-scale deployment, and it is in great need of capital support.

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Web 3 Funding Overview

Footprint Analytics - Web 3 Fundraising Amount

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Footprint Analytics - Web 3 Fundraising Rounds

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Footprint Analytics - Amount of Funding for Each Project in Web 3

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From the perspective of project financing, Forte, a leading company that provides blockchain solutions for game publishers, Mythical Games, a blockchain game, and Daml, a smart contract programming language, are particularly prominent.

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2021 Blockchain Funding Footprint Insights

Summary of the three major trends in the field of blockchain investment and financing in 2021

(1) Active investment and financing, capital influx gradually scaled up

As a secure and shared decentralized data ledger, blockchain is one of the underlying technologies that promote decentralized transactions in finance and other fields. As the research and application of blockchain technology become more and more mature, its industry value and potential have been generally recognized by technology investment institutions, and capital with a keen sense of smell has begun to flock into the blockchain world.

As mentioned above, compared with 2020, the number of financing in 2021 will increase by 525%, and the amount of financing will increase by 790%. This exponential growth tells us that investment institutions are pouring into the blockchain field on a large scale.

(2) There are many subdivided fields, and the application scenarios are diversified

In 2021, concepts such as metaverse and NFT exploded, which also led to the emergence of many subdivisions in the blockchain world in 2021. NFT DAO, SocialFi, and GameFi projects have sprung up suddenly, and have been favored by many investment institutions with advanced vision and willing to accept new things.

With the development of blockchain technology, there are more and more application scenarios, creating more possibilities for the blockchain world and even the physical world.

We have seen that the financing stage of blockchain projects is generally early and is still in the blue ocean stage, and it will take some time to fully mature.

Many projects were eliminated amid the rapid iteration and fierce competition in the field. This requires the blockchain project to grasp the trend, demonstrate the core technology, the strong vitality of the governance community, and become a long-term and viable blockchain project.

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The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

About Footprint Analytics:

Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy the zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.

Footprint Analytics official website: https://www.footprint.network

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The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

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