10 Long Term Crypto Investments from Financial Firms in 2022
It’s astonishing how much money financial firms are investing in the cryptocurrency industry. Billions of dollars are flowing into the space and it seems like every day there’s a new deal getting announced.
In this article, we’ll look at ten of the latest funding rounds and how they will help the cryptocurrency ecosystem expand. While some firms invest directly in coins, many other firms invest in the “picks and shovels” of the space. These businesses can grow whether it’s a bull market or bear, making them great investments.
Join us for a breakdown of some of the 10 most promising long term crypto investments from financial firms who really believe in the future of crypto.
1) a16z Raises $2.2 Billion
a16z’s latest fundraising round for their “Crypto Fund III” netted $2.2 billion, making it the largest crypto investment fund ever (for now). a16z, founded by Ben Horowitz and Marc Andreessen, is one of the most successful technology-focused investment firms in the world. They’ve been putting money to work in tech since 2009, and supporting crypto since the early days of Bitcoin, Ethereum and Maker DAO. a16z has profited handsomely in 2021, especially with the Coinbase IPO.
According to a16z’s website, the Crypto Fund III will invest in, “the next generation of visionary crypto founders, and invest in the most exciting areas of crypto. We invest in all stages, from early seed-stage projects to fully developed later-stage networks.”
2) Paradigm Raising $1.5 Billion
Paradigm is getting ready to raise $1.5 billion to invest in crypto startups. The fund, led by Coinbase co-founder Fred Ehrsam, will be raising money through November of 2020. Provided that the fundraising is successful, Paradigm could become one of the largest crypto investment firms in the world.
And this trend of increasingly large investments is likely to continue. A report by Bank of America has noted that the total invested in crypto has tripled in 2021, compared to the same time in 2020.
3) Multicoin Capital
Multicoin Capital is planning to raise $250 million for a new crypto fund that will invest primarily in blockchain startups. Earlier in the year, Multicoin capital raised $100 million for a different crypto fund targeted at DeFi and NFTs. All of this fundraising suggests that there’s lots of demand from investors that want to get exposure to digital assets.
Multicoin is already backed by a couple of large names, including Union Square Ventures and Ribbit Capital.
4) Animoca Backing the Metaverse
The blockchain development company Animoca has raised an additional $65 million, after a previous $138 million fundraising round in July. After these two investment rounds, the company is now estimated to be worth $2.2 billion.
Animoca focuses on investing in niche areas within the crypto ecosystem like NFTs and gaming. The company was an early investor in OpenSea and Axie Infinity, both of which have gone on to enjoy remarkable success.
5) Mojito and Sotheby’s
Mojito is a new company that’s focused on the rapidly growing NFT ecosystem. Specifically, Mojito serves corporate clients who want to mint and sell NFTs. The company recently raised $20 million, giving the firm a $100 million valuation.
Mojito is an interesting company since it’s working directly with the famous auction house Sotheby’s to build out their new metaverse strategy.
6) Findora’s new $100 Million Fund
Findora is a privacy-focused blockchain that recently announced a $100 million fund to grow its community. The money will be dispersed via grants to developers who want to build decentralized applications on Findora.
7) Voyager Digital Investment
Alameda Research has invested $75 million in the crypto trading app Voyager Digital. The investment deal will bring the two firms together to explore new opportunities in NFTs and crypto derivatives. Alameda will take about a 4% stake in Voyager Digital, a public company that trades under the ticker symbol VOYG. The announcement led to nearly a 50% increase in Voyager’s trading price.
QuickNode, which provides blockchain infrastructure solutions to major companies like PayPal and Coinbase, has raised $35 million from Tiger Global. QuickNode’s revenue has grown 20 fold in the last year and they’ll use the investment to continue the company’s expansion.
This investment round is further evidence of how many institutions are coming to the cryptocurrency ecosystem. QuickNode plans to focus on NFTs and helping large banks who want to start offering blockchain products.
9) GreenPark Sports
The social game developer GreenPark sports has raised $31 million in a Series B funding round. The money will help GreenPark to launch their first NFT collection. The company is primarily focused on bringing sports to the metaverse, and has already partnered with the NBA and League of Legends. We wouldn’t be surprised to hear about more high-profile partnerships in the future.
10) MoonPay Fundraising Round
You’ve probably not heard the name, but MoonPay recently raised $400 million from Tiger Global Management and Coatue Management. Despite being just three years old, the firm is already valued at $3.4 billion. For comparison, it took Uber six years to reach a $1 billion valuation.
MoonPay, which enables crypto credit purchases, has more than five million users and partnerships with popular platforms like OpenSea and Bitcoin.com
There’s More to Come!
We’ve covered ten of the latest crypto investments but that’s just the tip of the iceberg. A recent report reveals that in Q3 of 2021 fully $8.2 billion found its way to the cryptocurrency industry! These numbers suggest that large investors will pump more than $20 billion into crypto companies in 2021.
If you’re interested in tracking new long term crypto investments made by financial firms, the Messari daily newsletter is free and it’s the easiest way to stay up to date with the latest crypto fundraising rounds.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.