Although Bitcoin (BTC) and other virtual currencies have been in a bear trend during the last 12 months, venture capitalists continue to explore opportunities in this market. This can be seen with what some companies are already doing.
For example, Nasdaq Ventures led a Series B funding round that raised $20 million for Symbiont, a blockchain company specifically designed for financial institutions. Another VC company, Andreessen Horowitz, backed a custodian service for digital currencies raising $17 million in Series A funding. Finally, AMINO Capital provided $2 million seed fund to AnChain.ai a California-based blockchain company.
It seems that VC companies are replacing retail investors in the market. At least, they are making an important step to recover part of the market that retail investors lost during the last year. Back in 2017 and 2018, crypto projects discovered that Initial Coin Offerings (ICOs) in which these companies were able to raise funds and start developing their ideas. Nevertheless, ICOs were affected by this bear market.
Several regulatory agencies all over the world started to crack down unregistered blockchain startups. This happened with the U.S. Securities and Exchange Commission (SEC) and with other regulators in other countries and regions. In China and South Korea, the government decided to completely ban ICOs.
Other startups that were ready to develop their projects were not able to gather enough funds from retail investors. The ICO method has been very damaging for the crypto world and companies in the space.
Since its all-time high, the crypto market lost around 90% of its market capitalization. Several startups, ICOs, tokens and cryptocurrencies were not able to keep operating in the current bear trend.
VC want to take advantage of this situation and provide funding to companies that are not relying on ICOs to launch their products. Ultimately, the whole crypto market is becoming more mature with an increased presence of traditional financial companies and enterprises.