As more developers build decentralised applications and crypto becomes mainstream, more and more investors recognise the power of Web3. Last year was pivotal for the Web3 sector, where it matured from a developing community to a budding industry, and it's evident that the Web3 space will continue to grow and receive more attention from investors onwards.
Forbes shared some high-level metrics of the Web3 venture capital activity in the 2021 market:
We researched key players within this segment and compiled a list of the top Crypto/Web3 investors. Some of these investors focus solely on the Web3 space, while some invest in a wide range of companies.
Pantera Capital is an investment firm based in Menlo Park, California, specialising exclusively in ventures, tokens, and projects related to blockchain tech, digital currency, and crypto assets. They are the first U.S. Bitcoin investment firm and have a proven track record of building a well-diversified portfolio and being a value-add to the companies.
Union Square Ventures is a thesis-driven venture capital firm based in New York. They have investments in over 100 companies, including well-known projects such as Stripe, Quizlet, and Stack Overflow. Although they have an imposing track record with standard companies, they have an even more impressive track record in the digital currency space with investments in Coinbase, Protocol, and Numerai. The main goal of Union Square Ventures is to leverage networks, platforms, and protocols to allow trusted companies to broaden access to knowledge, capital, and well-being.
Digital Currency Group is a New York-based investment firm specialising in digital assets. They support blockchain companies ranging from early-stage projects to fully established companies, the most famous being Coinbase, Circle, Ledger, Ripple, and ShapeShift. Digital Currency Group has invested in over 100 companies in over 30 countries; they also own and operate Coindesk, Genesis Trading, and Grayscale Investments.
Dragonfly Capital Partners is a venture capital firm based in San Francisco, California. The firm prefers to invest in seed-stage, early-stage, and later-stage companies operating in the software, fintech, cryptocurrency, and financial services sectors.
Galaxy Digital is a full-service digital assets management fund founded by former Fortress Investments hedge fund manager Michael Novogratz. Galaxy Digital has extensive experience in portfolio management and blockchain technology and intends to bridge the worlds of cryptocurrency and institutional investing together.
Paradigm is a crypto-focused investment firm based in San Francisco founded by Coinbase co-founder Fred Ehrsam and Sequoia Capital partner Matt Huang. Both founders have extensive experience investing in the cryptocurrency sphere, which shows why Paradigm is one of the world's most significant crypto investment funds.
Benchmark Capital is a venture capital fund whose primary focus is early-stage venture investing in social, mobile, local, and software companies. They have invested in over 250 early-stage startups and paid out over $22 Billion to investors. They are also widely known for creating the first equal ownership and compensation structure, where each of their six full-time partners shares profits evenly, making no difference between their junior and senior partners.
Silicon Valley-based GV is a venture fund that provides seed and growth stage funding to companies across all stages and sectors. They focus mainly on artificial intelligence, robotics, and life sciences, with a recent focus shift on crypto and blockchain-based companies. They have invested in more than 300 companies that push the edge of what's possible. Additionally, they are known as Google Ventures and are the venture capital arm of Alphabet, Inc.
AngelList is the leading platform for startups, where they help by investing in them or assisting with raising money. They can even pair job seekers with startups to help build their teams. Since launching in 2010, AngelList has helped raise over $750M for over 2,000 startups, causing them to become the world's largest startup community.
Founders Fund is a venture capital fund based in San Francisco, California, focusing on investing in companies building revolutionary technologies in various sectors. The primary industries they are invested in are fintech, transportation, and software companies. Founders Fund strives to earn an attractive return by funding positive transformation.