top 6 crypto venture capital vc firms of 2022

According to Coindesk crypto venture capital analysis, global funding rose over $9 billion in the fourth quarter of 2021. Global funding rose 713% within one year compared to 2020.

Projects that raised the most market cap were usually the ones that worked with blockchain / crypto venture capital firms. Due to the fact that new projects are being launched every day and the market is getting more & more saturated, then it takes more effort and capital to reach the goals.

‍What are crypto venture capital firms?

‍Venture capital firms are basically a group of investors who are looking for short-term gains. They have a shared pool of funds which they are using to fund crypto & web3 startups.

Crypto capital ventures are led by fund managers who gather investors to participate in funding these crypto & NFT startups. Fund managers are the people who do deep research whether the project has growth potential or not. Crypto VC  firms compose of cautious investors who are trying to find golden needles in the haystack, which means that they are more likely to invest into projects that have solid foundations: Team and their experience in the field.

Crypto & web3 startups usually ask for help from top crypto venture capital firms if they are not yet ready to go public or unable to receive funds from retail investors.

Good news about crypto capital venture companies is that they are not limiting themselves to blue-chips or crypto unicorns, because there aren't many crypto VC companies that have billions of dollars in valuation.

Rather, VC funds are trying to recognize projects in the early stage that have an astronomical growth potential.

‍Venture capital funding stages

‍Venture capital funding consists of 5 stages - pre-seed, seed-capital, startup capital, early stage & expansion stage. Note that more stages can be added later if the funded project doesn't meet the goals within those 5 stages.

Pre - seed

‍In this stage funding is usually derived from friends, family & angel investors. Crypto angel investors are people who act as a crypto VC, but they are doing it solo. Angel investors are easy to catch if a project owner has connections with wealthy people. Unlike crypto funding firms, angel investors tend to invest into projects even if they only believe in the project owners ability to deliver.‍

‍Seed Capital

Seed Capital is known as the shortest round of them all. This capital is raised by crypto investment firms for testing the product or service in the global marketplace. This stage will determine whether the product is worth putting out in the market. Startups can also convince crypto capital ventures with detailed documents, which we will go over later.

‍Startup capital - Series A

‍This is the stage where things are getting more serious. Series A is for projects that already have a proven analysis of the product or service & a strong community behind it.

This stage is not anymore a place for startups, because in this field venture capital crypto companies are funding projects that have a much lower risk because it already has a working business model. Crypto VC companies are focusing on evolving the already existing product or service to expand into new markets.

Early stage - Series B

At this stage cryptocurrency companies must have a solid foundation with a massive user base. Crypto funding is focusing on scalability & improving market reach even further, at the same time hiring professionals in the field to make a stronger team.

Additionally more focus is being directed to customer service, business development, marketing & sales.

Expansion stage - Series C

‍The last stage where crypto venture capital firms step in. Companies that have reached the expansion stage are already well - established in their field. In this stage companies ask for funding to create new products or services and diversify their product lines.

Businesses at the expansion stage usually try to test new products out of the ordinary. For example a blockchain company that deals in the music industry expands to fashion industry.

Luckily the risk of investment for VC companies is lower, but so are the returns. It's because the companies require less & less money from venture capital firms if they are already running at a profit.

What do crypto vc companies require for funding?

‍As mentioned above, VC companies usually step in at the stage 1 : Seed Capital. Project owners can always sell their projects to VC-s better by providing them the following documents:

• A detailed pitch-deck
• Profit & loss statement
• Realistic roadmap
• Cashflow documents

Some crypto venture capital funds require more complex documents, mostly VC-s that are working with unicorns and multi-million dollar projects.

‍From simple venture capital to crypto venture capital

‍The crypto industry is evolving fast. Some even compare the blockchain era with the gold rush (1848-1855). More & more established VC funds are taking turns from simple financing to cryptocurrency and web3 trenches.

List of top 9 Crypto Venture Capital firms

‍The list provided above was composed by top crypto investors, analytics, blockchain developers & CoinMarketCap deep analysis. All information and due diligence is provided by Coinboosts Crypto & NFT Marketing Agency.

1. Three Arrows Capital

Three Arrows Capital was founded by Singaporeans Su Zhu & Kyle Davies. Their company is one of the TOP VC firms in crypto space. They have stakes in Ethereum, Terra, Solana, Avalanche etc. They quickly got into crypto gaming with successful investments in Axie Infinity and many others.

2. MAD Capital

Mad Capital was created in the early days of blockchain-based gaming, in mid-2021. Founders David and Mark got their start in the Play 2 Earn industry, which also helped Mad Capital build a portfolio.

Mad Capital is more of a growth-oriented organization than just a capital provider. According to Mad Capital, they are always on the lookout for bold and outstanding initiatives that advance Web 3.0 and drive innovation in the field. Not only developing long-term business models but also creating habit-forming products and a dedicated customer base.

Mad Capital is a hybrid incubator/venture capital firm that challenges founders and provides feedback based on their outcomes and ideas. Mad Capital will benefit if the idea succeeds.

Pong Heroes is one of Mad Capital's projects. Aside from Coinracer, Pong Heroes has received detailed guidance through every step of developing a market-winning product.

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3. Paradigm

Founded by Coinbase co-founder Fred Ehrsam and Matt Huang. They have a decade long experience in investing into cryptocurrencies. They have helped projects both in early and in the developed stage. Paradigm is known as one of the biggest Crypto VC funds in the world, they don't just fund projects but they give everything in their capability to make these projects successful.

4. Protocol Ventures

Protocol Ventures has built strong connections with top hedge fund manager in the space, therefore they have made very successful investments in the leading cryptocurrency companies. They only allow investors with a minimal investment of $5 Million dollars to be part of their venture capital.

5. NGC Ventures

NGC Ventures is heavily investing into blockchain and distributed ledger technologies. They have been key contributors in many Metaverse projects like: Big Time and Everyrealm.

They have also contributed in DeFi projects like Seedify.fund & Polkastarter.

This Venture Capital firm is usually hard to contact with, because they have thousands of submissions per day.

6. Placeholder Ventures

Placeholder is a venture capital firm that invests heavily into Web3 services & Open blockchain networks. Their Funds have exceeded $1B, which allows them to work with blue-chip projects. This Venture Capital firm is led by Joel Monegro, Chris Burniske&Brad Burnham.One of the top projects that they are invested in: API3, Aragon & Avantgarde.

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