Today we’re tackling the top crypto VC firms you should consider when your company is looking for an investment. But what makes VC funding in cryptocurrency companies different than traditional VC funding?
Well, it’s essential to break down how VC funding generally works. VCs, or Venture Capital funds, are formed by investors that want to make a lot of money – and fast. This usually means investing early in a firm. Thousands of projects are typically reviewed before a VC commits, breaking down the company’s growth potential and potential return on investment. VC funding has been a go-to route for startup companies that aren’t entirely ready to go public, which is where crypto companies come in.
VC funding isn’t much different from traditional VC funding. However, one thing separates the two – the startups benefiting from financing operate in the cryptocurrency market (CoinTelegraph).
And it’s good that VC firms believe in blockchain and cryptocurrency companies, like the top five VC funds we list below.
Andreessen Horowitz -a16z
Andreessen Horowitz (or “a16z”) is a crypto venture capital company in Silicon Valley, California, that ‘backs bold entrepreneurs building the future through technology.’ a16z was founded in 2009 by Marc Andreessen and Ben Horowitz and has since built a network of experts from top media and marketing resources, Fortune 500/Global 2000 companies, technology decision-makers, influencers, and key opinion leaders to be one of the biggest crypto VC firms today. a16z has invested in several leading cryptocurrency firms, like Coinbase, Celo, and MakerDAO.
Coinbase Ventures has one mission – ‘to invest in exceptional founders who share Coinbase’s mission of creating more economic freedom for the world.’ Founded by Brian Armstrong, Coinbase Ventures is the investing department of the centralized crypto exchange Coinbase. Coinbase Ventures has invested in BlockFi, Compound, and Starkware, to name a few, and is looking for exceptional entrepreneurs advancing the crypto/Web3 ecosystem.
Founded in 2017, Alameda Research is a leading principal trading firm with a globally focused team and infrastructure that trades on all major exchanges and markets. The team’s extensive crypto expertise allows them to trade thousands of digital asset products. Led by Sam Trabucco, Alameda Research owns stakes in Bitcoin, Ethereum, Binance, Solana, and many more.
A division of the Jump Trading group, Jump Crypto is made up of engineers, investors, and traders consumed by building the future of web3. This investing department has hubs in Europe, Asia, and the United States and has invested in several projects, including the well-known Solana and Terra.
On a mission to empower the decentralized web, Binance Labs is a subsidiary of centralized exchange Binance. Binance Labs ‘identifies, invests, and empowers viable blockchain entrepreneurs, startups, and communities’ to help grow the blockchain ecosystem. Their portfolio includes Terra, BitTorrent, Moonbeam, and Coin98.