Asia's leading venture capital continuously invests in Blockchain and encryption fields

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

According to the latest research report, from January 2021 to June 2022, the top 20 venture capital firms in Asia participated in a total of 495 blockchain and encryption-related investments worldwide. These active investors mainly come from regions such as mainland China, Hong Kong, Singapore, and India, and their investment focus is largely on innovative companies in the United States.

Global Layout

Prominent institutions in terms of global investment transaction volume include 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 investment firms have directed funds towards several American Blockchain companies, including the security analytics platform CertiK, the payment platform MobileCoin, the encryption trading platform FalconX, and the blockchain development service provider InfStones.

Asian Market Layout

In terms of investment in blockchain companies in the Asia region, the top five investors are AU21(25 transactions ), GBV Capital (24 transactions ), Distributed Capital (19 transactions ), HashKey Capital (19 transactions ), and NGC Ventures (19 transactions ). These institutions mainly invest in blockchain companies in Singapore, such as the encryption trading software company Zignaly, digital asset custodian Hex Trust, gamified platform StarryNift, and the decentralized electronic protocol signing platform EthSign developed based on Ethereum, IPFS, and Filecoin technologies.

Investment Hotspots

In the past 18 months, 13 of the top 20 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, including Blockdaemon and InfStones in the United States, as well as Stake Technologies in Singapore. Meanwhile, institutions such as NGC Ventures, Basics Capital, and Ascensive Assets have focused more on application projects, especially in the GameFi sector, where they each have over 10 investments in their portfolios.

In addition, DeFi and NFTs, as the two fastest-growing areas in encryption, have also been favored by these venture capitalists.

Future Outlook

Singapore has become the center of blockchain in Southeast Asia. The country launched a $12 million blockchain innovation program in 2020, aimed at promoting the development of the local blockchain ecosystem. In the fourth quarter of 2021, Singapore was ranked as the world’s leading cryptocurrency-ready country.

India may also become a hotspot for attracting investor attention in the future. Currently, there are about 230 startups in India providing services for the encryption field. Although the country is facing complex issues related to taxation, this does not seem to affect the enthusiasm for investing in Web3 companies. It is expected that in 2022, the venture capital for these startups may 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 area is particularly suitable for consumer-facing service startups. In addition to consumer demand, the open attitude of Asian countries like Singapore towards cryptocurrency has also attracted many entrepreneurs, especially against the backdrop of increasing regulatory scrutiny in the United States.

It is worth noting that regulatory agencies in Asian countries are developing frameworks for managing digital assets in the coming years, which will have a significant impact on the region's encryption and Blockchain investment environment.