Top 6 Crypto Venture Capital Firms

Filip Dimkovski
By Filip Dimkovski
Tamara Fodora - Editor for DeFipedia
Edited by Tamara Fodora

Published January 8, 2023.

A hand pointing at a phone screen with coins flying out of it

In traditional finance, venture capitalist (VC) funding refers to a group of investors that invest in the early development stages of a company as a way to earn significant profits while it grows. Similarly, crypto VC refers to the process of investing in a cryptocurrency venture before it reaches the masses and grows in both popularity and value.

Of course, these crypto VC firms evaluate the project's initiative and potential, while estimating their growth in the future to get a great return. VC firms continuously prosper and are always investing in new projects, so it can be quite beneficial to know who these firms are and their top picks. Being familiar with a VC firm's investment can make a world of difference for a retail investor, as following their steps might help you continuously outperform the market. Keep in mind that these are multi-billion dollar companies that have years of experience in the market, so it's safe to assume they understand how the market works.

Now, with the basics out of the way, let's go over the top crypto VC firms in no particular order and learn more about them.

1. AU21 Capital

  • Area of Focus—Cryptocurrency projects, artificial intelligence startups, and financial software solutions.
  • Blockchain & Crypto Deals—$5 million in PaxWorld, $2 million in Satoshi Games, $1 million in the Cryption Network.
  • Notable Investments—Aragon, Kadena, and Solana.

Founded in 2017, AU21 Capital is one of the most active & profitable crypto VCs with investments in a variety of projects. With offices in San Francisco and London, this firm has invested in notable successful startups such as Aragon, Kadena, and Solana. Many of these startups have since then exploded into multi-billion dollar projects, making AU21 a ton of profits along the way.

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2. Andreesen Horowitz -a16z

  • Area of Focus—Financial software solutions, social platforms, and Web3 & blockchain projects.
  • Blockchain & Crypto Deals—Over $4 billion invested in a wide variety of crypto & Web3 companies.
  • Notable Investments—Solana, Lido, MakerDAO, and Compound

Andreesen Horowitz is a Silicon Valley venture capital firm founded back in 2009 that primarily invests in tech & crypto companies, but also in FinTech (financial technologies), iGaming, healthcare, and enterprises. This VC firm has been one of the largest investors in the crypto space, investing a total of $4.5 billion into a wide variety of projects in the space. Founded by two entrepreneurs Marc Andreessen and Ben Horowitz, the company has been successful for over a decade now.

3. Coinbase Ventures

  • Area of Focus—Cryptocurrency projects and blockchain-based startups.
  • Blockchain & Crypto Deals—$2 million in Compound, $3 million in DeFi Money Market, $10 million in TrustToken.
  • Notable Investments—Dapper Labs, OpenSea, Uniswap, NEAR, and 0x Protocol

Since it was founded in 2018, Coinbase Ventures has been the venture arm of Coinbase, which is one of the most popular crypto exchanges. This VC firm invests in projects that align with Coinbase's mission and vision of creating an open financial system for everyone. As such, it primarily focuses on cryptocurrency projects and blockchain-based startups that are revolutionizing the industry.

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4. Binance Labs

  • Area of Focus—Blockchain & cryptocurrency projects, security tokens, and blockchain-enabled software solutions.
  • Blockchain & Crypto Deals—$1 million in PoolTogether, $2 million in Republic Protocol, $3 million in TrustToken.
  • Notable Investments—DappRadar, CertiK, Neo Global Capital, and BakerySwap.

Binance Labs is a venture arm of Binance, one of the largest cryptocurrency exchanges in the world. Founded in 2017, this VC firm focuses its investments on blockchain projects that will help drive mass adoption and further enhance the industry. It has invested in a variety of startups such as DappRadar, CertiK, Neo Global Capital, and BakerySwap. It has also invested in security tokens and blockchain-enabled software solutions.

5. Jump Crypto

  • Area of Focus—Cryptocurrency projects, blockchain-based software solutions, and Web3 startups.
  • Blockchain & Crypto Deals—$1 million in Kadena, $2 million in OpenLaw, $4 million in The Graph.
  • Notable Investments—Algorand, Dapper Labs, Dharma Protocol, and Chainlink.

Jump Capital is a venture capital firm founded in 2012 with offices in Chicago and San Francisco. This VC firm focuses its investments on cryptocurrency projects, blockchain-based software solutions, and Web3 startups. So far, it has invested over $20 million in various projects such as Algorand, Dapper Labs, Dharma Protocol, and Chainlink.

6. Digital Currency Group

  • Area of Focus—Cryptocurrency & blockchain-based software solutions.
  • Blockchain & Crypto Deals—$2 million in Blockstream, $4 million in Chainalysis, and $5 million in Ripple.
  • Notable Investments—Bitpagos, OpenNode, Blockstream, and Genesis Trading.

Digital Currency Group is a venture capital firm founded in 2015 that focuses on investments in cryptocurrency & blockchain-based software solutions. It has invested over $200 million into various startups such as Bitpagos, OpenNode, Blockstream, and Genesis Trading. It has also invested in Ripple with a $5 million investment in the company. This VC firm has also invested in some of the most promising projects in the industry, including Blockstream and Chainalysis. With its long history of investing in the industry, Digital Currency Group has become a leader in venture capital investment in cryptocurrency and blockchain technology.

Final Thoughts

Cryptocurrency and blockchain technology are changing the way people transact and view money. With more venture capital firms investing in these projects, there is bound to be a surge of new innovations and opportunities for entrepreneurs, investors, and users alike.

Coinbase Ventures, Binance Labs, Jump Capital, and Digital Currency Group are just some of the many VC firms that are investing heavily in the industry. Each has its own areas of focus and notable investments, but they all share a common goal—to make cryptocurrency and blockchain technology accessible to everyone.