DeFi concept platforms have raised over 1 billion US dollars in funding so far, with these VC investors contributing the most!
The total locked value of decentralized finance (DeFi) platforms continues to reach new highs, but most people are unaware that DeFi has quietly achieved another lesser-known milestone.
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2017: Retail Investors Lead the Primary Market
According to blockchain media outlet The Defiant, DeFi projects in the market have raised over $1 billion from venture capital funds. Just on DeFi Pulse, 34 DeFi companies have raised over $500 million from over 100 venture capital funds.
The Defiant points out that in 2017, during the ICO boom, retail investors heavily participated in the primary market, with funds raised through token sales accounting for over 50% of the total funds raised to date, with the highest fundraising coming from ICOs of Bancor, Kyber, and Loopring.
However, starting from 2018, the participation of venture capital funds has been increasing, indicating that more investment is being reserved for institutional investors.
Post-Bubble: Institutions Take Over the Primary Market
Among the companies analyzed by The Defiant, only four companies conducted token sales after 2017: Ren, Metronome, PieDAO, and bZx. Apart from these special cases, most of the financing from 2018 to present has been completed through selling equity or tokens to venture capital funds.
Looking at the overall funding of DeFi companies, the top fundraising companies are: Bancor - $153 million (token sale, June 2017), Maker - $61.5 million (institutional investment), Kyber - $52 million (token sale, September 2017), Loopring - $45 million (token sale, August 2017), Compound - $33.2 million (venture capital financing). Maker and Compound are the two platforms that raised the most funds from VCs.
On the other hand, according to The Defiant's analysis, the venture capital funds with the highest trading volume in the DeFi field are Polychain Capital, A16z, Paradigm Capital, 1Confirmation, Bain Capital Ventures, Coinbase Ventures, and KR1, which typically serve as the main lead investors in seed rounds.