VCs injected $ 4 billion into crypto firms in Q2: CB Insights

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The second quarter saw a record $ 4 billion in venture capital raised by cryptocurrency companies, amid a bumper crop of $ 30.8 billion in fintech transactions overall, an increase of 29 % year-over-year, according to business trends observer CB Insights.

The report mentioned major funding rounds, such as those from stablecoin firm Circle, which landed a record $ 440 million in May. (A crypto firm’s biggest new funding round came earlier this week when the FTX crypto derivatives exchange announced it had raised $ 900 million.)

CB Insights also noted the $ 380 million funding from hardware wallet maker Ledgers in June; a $ 300 million round in April for custodial firm Paxos (which, like Circle, also acts as stablecoins manager); Block.ones $ 300 million funding round in May for its bullish trade; and the Mexico City-based crypto exchange Bitsos, for $ 250 million, in May.

While the prices of bitcoin and other cryptocurrencies have flattened in recent weeks, the size of crypto increases so far appear to be increasing in the third quarter, with FTX leading the way.

Q221 was the biggest fundraising quarter on record, according to the Global Fundraising Report, adding:

Out of 657 deals, global financial companies backed by VC raised a record $ 30.8 billion, shattering last quarter’s funding record by 30%. This impressive funding growth was accompanied by a modest 2% growth in transactions quarter over quarter (QoQ) and a 29% increase year over year (YoY).

Crypto has ushered in a new era in banking compliance, according to the report. Blockchain analytics companies, which track transactions and help regulators and law enforcement, are another hot area in terms of funding.

The report mentions two major rounds for these companies in June, Chainalysis raising $ 100 million and CipherTrace raising $ 27 million.

CB Insights also singled out crypto custody and infrastructure as notable sub-segments for their fundraising ability. In addition to funding for Ledger and Paxos, San Francisco custodial tech firm PolySign raised $ 53 million and London-based custody firm Copper raised $ 25 million.

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