Venture capitalists are putting in millions and billions of dollars into what is ultimately set to create an alternative world of commerce, finance, entertainment and communications. These investments are set to radically change some of the global economy’s major elements. All these changes are taking place on blockchain technology, which was first popularized by the cryptocurrency Bitcoin – the world’s biggest crypto as of now.
In 2021’s first three quarters, a whopping $21.4 billion was invested by venture capitalists into companies associated with blockchain technology and cryptocurrencies. According to market data provider Pitchbook, this money was invested as a part of 1,196 deals. Compared to investments from venture capitalists in 2020, that’s greater than five times.
One of the biggest venture capitalists in the world, Andreessen Horowitz, is spearheading the investments. These investments, in their own way, are breaking the digital status quo. Now, the biggest gatekeepers in the world of tech are the ones who are reaping the most rewards, with most of their profits coming from others’ data and creativity.
Venture capitalists are mostly putting their money into the following:
- Gaming and collectibles: Games like Axie Infinity, which allow players to earn crypto, are set to grow even bigger with more investments coming their way. As of now, Axie Infinity has more than a million players.
- Artificial intelligence and DeFi: The total investments from venture capitalists in the DeFi sector amount to more than $235 billion. DeFi programs such as UniSwap allow people to trade in digital assets.
- Telecommunications: Andreessen Horowitz is supporting Helium, a decentralized wireless infrastructure company that has ambitions of competing with renowned telecommunications brands such as AT&T and Verizon.