Asian Venture Capitalists Enthusiastic About Blockchain and Encryption: Participated in 495 Investments in the Past 18 Months

Despite the increasingly stringent regulatory environment, top venture capital funds in Asia are still actively investing in blockchain and encryption projects both in the region and globally.

According to research data, from January 2021 to June 2022, the top 20 venture capital firms in Asia participated in a total of 495 investments globally based on the number of blockchain/encryption-related transactions they were involved in.

These active investors mainly come from regions such as mainland China, Hong Kong, Singapore, and India. It is worth noting that most of the investment flows into companies in the United States.

Globally, the more active investors include AU21 Capital (59 transactions), Distributed Global (45), GBV (43), HashKey Capital (41), NGC Ventures (38), and Basics Capital (12). These leading investors have directed funds towards several blockchain companies based in the United States, covering various fields such as security analysis, payment platforms, encryption trading, and blockchain development.

In the investment of blockchain companies in the Asia region, the top 5 investors are AU21 (25 deals), GBV Capital (24 deals), Distributed Capital (19 deals), HashKey Capital (19 deals), and NGC Ventures (19 deals). These investments are mainly directed towards blockchain companies in Singapore, including projects such as encryption trading software, digital asset custody, gamified platforms, and decentralized digital signature platforms.

Blockchain development platforms have become the most popular investment areas. In the past 18 months, 13 out of the 20 largest venture capital firms in Asia have invested in blockchain development platforms or infrastructure projects. Among them, Fenbushi Capital and Hashkey Capital invested in 4 and 3 companies, respectively. Institutions like NGC Ventures, Basics Capital, and Ascensive Assets have focused more on application-based projects, especially in the GameFi sector, each having over 10 investments in their portfolios.

DeFi and NFTs, as the two fastest-growing areas in encryption, have also attracted the favor of these venture capitalists.

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

India may also become a country that attracts investors' attention in the future. Currently, there are about 230 startups in India providing services in the encryption field. Although the country is dealing with complex issues related to encryption taxation, this has not affected the enthusiasm for investing in Web3 enterprises. It is expected that in 2022, venture capital for Web3 startups will continue to maintain strong momentum.

Asian venture capital firms will continue to provide funding support for companies in the region. The Web3 environment in this region is very suitable for the development of startups that offer services to consumers. In addition to consumer demand, Asian countries like Singapore have attracted many entrepreneurs with their open attitude towards cryptocurrencies, especially against the backdrop of increasingly strict regulatory scrutiny in the United States.

It is worth noting that regulatory agencies in many Asian countries are developing frameworks to manage digital assets in the coming years. This will provide clearer guidance and a more stable environment for the development of the Blockchain and encryption industries in the region.