Asian venture capital continues to strongly support Blockchain and encryption projects

Recently, despite tightening regulations, top venture capital funds in Asia are still actively investing in blockchain and encryption projects in the region and globally.

According to the data, between January 2021 and June 2022, Asia's top 20 VCs participated in a total of 495 related investments. Among them, the most active investors are mainly from Chinese mainland, Hong Kong, Singapore and India, and most of the funds go to US companies.

Global Layout of Asian Funds

Among the most active Asian institutions in global investment are AU21 Capital(59 transactions), Distributed Capital(45 transactions), GBV(43 transactions), HashKey Capital(41 transactions), NGC Ventures(38 transactions), and Basics Capital(12 transactions).

These leading investors are focusing on several American Blockchain companies, including:

• Security Analysis Platform CertiK
• Payment platform MobileCoin
• Encryption trading platform FalconX
• Blockchain development service provider InfStones

Support for Local Asian Projects

In terms of investment in blockchain companies in Asia, the top five investors in terms of the number of transactions are AU21(25 ), GBV Capital(24 ), Fen Capital (19 ), HashKey Capital(19 ) and NGC Ventures(19 ).

These institutions have primarily invested in blockchain projects in Singapore, including:

• Encryption trading software company Zignaly
• Digital asset custodian service provider Hex Trust
• Gamified platform StarryNift
• Decentralized Electronic Signing Platform EthSign

The most sought-after areas for investment

Over the past 18 months, 13 of Asia's top 20 VCs have invested in blockchain development platforms or infrastructure projects. Among them, Fenbushi Capital and HashKey Capital have invested in 4 and 3 companies respectively, including Blockdaemon and InfStones in the United States, and Stake Technologies in Singapore.

Institutions such as NGC Ventures, Basics Capital and Ascensive Assets are more focused on application-oriented projects, especially in the GameFi space, each with more than 10 portfolios.

In addition, DeFi and NFTs, as the two fastest-growing areas in encryption, have also received significant attention from these venture capitalists.

! Analysis of Asian Crypto Funds and Their Investment Projects: Participated in 495 investments since last year, DeFi and NFT have grown the fastest

Future Investment Trends in Asian Venture Capital

Singapore has become the blockchain hub of Southeast Asia. The country launched a $12 million blockchain innovation program in 2020 aimed at promoting the development of the local ecosystem. In the global cryptocurrency rankings for the fourth quarter of 2021, Singapore was rated as the world's leading crypto-ready country.

India may also become a future investment hotspot. Currently, there are about 230 encryption-related startups in India. Despite facing regulatory challenges such as taxation, the investment enthusiasm for Web3 companies remains strong, and venture capital investment in this field is expected to continue in 2022.

Asian venture capital will continue to support innovative projects in the region. The Web3 ecosystem in the region is very suitable for consumer-facing startups. In addition to consumer demand, the open attitude of countries like Singapore towards cryptocurrency has also attracted many entrepreneurs, especially against the backdrop of tightening regulations in the United States.

In the coming years, regulatory agencies in Asian countries will gradually establish a digital asset management framework. Despite the challenges, Asia will remain an important stronghold for global Blockchain and encryption innovation.