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

A brand new report issued by LAVCA, the Association for Private Capital Investment in Latin America, has discovered that the enterprise capital (VC) funding within the area has grown immensely in comparison with the earlier yr’s numbers. In normal, the area registered investments of greater than $15 billion, greater than thrice the quantity registered in 2020. However, crypto and blockchain investments grew nearly tenfold.

Crypto Outpaces Conventional VC Investments in Latam

A brand new report issued by LAVCA, the Association for Private Capital Investment in Latin America, particulars the expansion of the enterprise capital (VC) motion within the area and highlights the curiosity that these corporations took in crypto in 2021. The report discovered that the area skilled notable progress with regards to enterprise capital investments, greater than tripling the numbers registered the earlier yr. In 2020, LAVCA registered $4.14 billion in VC investments, within the midst of the coronavirus pandemic. Last yr, this inflow reached $15.7 billion.

Investments made in defi, blockchain, and cryptocurrency sectors vastly outgrew the funding progress charges in additional standard sectors. According to numbers registered within the report, these investments reached $653 million in 2021, rising nearly ten instances greater than the quantity that the sector registered in 2020 ($68 million), supported by the rising curiosity of customers in these different funding automobiles.

However, the fintech sector skilled the largest quantity, registering $6.1 billion invested throughout 258 transactions, rising nearly 4 instances as in comparison with 2020.

Large Growth, Few Companies

While the expansion that this sector skilled in Latam final yr was explosive, it was concentrated in a number of corporations that management the cryptocurrency trade on the continent. Most of the $653 million funding was allotted in funding rounds for 4 corporations.

Mercado Bitcoin, one of many greatest cryptocurrency exchanges within the area, registered an allocation of $290 million throughout three funding rounds. Bitso, a Mexico-based cryptocurrency platform, obtained $250 million in investments. The different two huge platforms VCs invested in have been Ripio, an Argentinian change that obtained $50 million in a funding spherical led by DCG, and Lemon Cash, one other Argentinian change, with $17.3 million.

However, there are greater than client exchanges and buying and selling platforms with regards to crypto funding within the area. The report states that there have been different investments directed to the B2B (business-to-business) companies sector throughout these first months of 2022. Among these are Liqi, with $5.5 million in investments, Gavea Marketplace with $5 million, and Agrotoken, additionally with $5 million.

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