Assets Under Management Surge In Crypto Venture Capital Firms

Venture capital (VC) firms with a focus on cryptocurrency businesses and Web3 projects are accumulating billions of dollars worth of assets under management as the capital injection into the Web3 sector continues to rise.

Business journalist, Eric Newcomer, looked at recent applications with the U.S. Securities and Exchange Commission (SEC) to identify some of the biggest venture capital firms in the Web3 and crypto sectors. His findings showed that there are a handful of cryptocurrency VC firms that have grown their assets under management significantly.

According to Newcomer’s findings, for one investment firm, Paradigm, the assets under management figure for Web3 and crypto totals $13.2 billion in assets. This is a 343% growth compared to the $2.98 billion reported in a filing in December 2020.

A venture capital firm in Silicon Valley, Andreessen Horowitz (a16z), has also recently revealed that their crypto-focused funds total approximately $9 billion.

Other notable VC firms include Sequoia Capital and Tiger Global, who also posted big numbers, with $85.5 billion and $124.7 billion respectively. Tiger Global saw a 58% increase from its filings in 2021.

The growth in the Web3 sector was further corroborated by a recent report that showed that $25.2 billion worth of venture capital went to global blockchain startups. This is an astounding 713% increase from the $3.1 billion in 2020.

Expectations could be greater for 2022, as a16z revealed that it is gearing up to raise $4.5 billion for its latest cryptocurrency-focused fund. Another project that is likely to attract a fair amount of VC funding in 2022 is Solana, as venture capital firms are keenly looking at Solana’s NFT offerings for potential further opportunities.