Record: $1.2 billion invested in Canadian crypto businesses

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LES KEYS DE LA CRYPTO is a section that patiently decodes the world of cryptocurrency and its stock market, industrial and media turmoil. François Remy’s mission is to identify promising entrepreneurs, decode technical progress and anticipate the industrial and societal impacts of this digital currency.

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The year 2021 marks a famous vintage for blockchain start-ups. Funding rounds are exploding the counters all over the world.

“A year that has already broken all records,” says business analytics firm CB insights in its new quarterly report The State of Blockchain Global Funding for Blockchain Startups and/or cryptocurrencies continued to climb (+384% compared to 2020) to reach new heights: the equivalent of 19 billion dollars (B$) Canadian since January.

A phenomenon that has not stopped at Canada’s borders. In the past three months alone, growing businesses have seen an influx of nearly $645 million, ten times more than in the previous quarter.

Among them is Vancouver-based Dapper Labs, which became famous at the end of 2017 for its CryptoKitties (yes, digital kittens to breed, collect or sell), but which made it to the major league of the crypto industry with the NBA Top Shot (great moments of basketball players immortalized as NFTs on the blockchain).

With 220 employees and valued at $9.5 billion, the Dapper Labs unicorn thus carried out a mega-round of more than $300 million last September which will be used, among other things, to further democratize digital collectibles.

A month earlier, another major player in the bitcoin ecosystem also led a $261 million mega-round, Victoria, BC-based Blockstream.

[CARTOGRAPHIE DES FINANCEMENTS]

Founded in 2014 with a mission to “build the financial infrastructure of the future” by following open innovation, the company has established itself as a leader in the field of blockchain technologies and research state-of-the-art in cryptography and distributed systems. This is a new unicorn, whose value now flirts with $4 billion.

It must be said that with twelve new unicorns on a global scale over the period observed, this “entrepreneurial birth rate” has never been so high. That being said, the herd remains very American, with 15 of the 31 unicorns listed this year.

Another notable fact is that while “crypto exchanges” have attracted the most funds of all other categories of activity this year, Canada does not register any funding in this specific sector.

On the international venture capital scene, Canada stands out thanks to its dynamism compared to the rest of the world with approximately 10% of financing during the quarter observed, while operations represent only 2% of global volumes. (286 deals). Much larger, Europe accounts for 15% of funding, while Asia accounts for 20%. But it is the United States that largely dominates (50%).

To conclude the quarterly top five of financings in Canada, to a significantly lesser extent than their counterparts, let us note, first, the company Figment, a Toronto-based provider of infrastructure for the decentralized web, which raised $62 million. we find Horizon Blockchain Games, another Toronto company, which as its name suggests creates crypto games and tools to help others do the same, whose sum obtained amounts to $ 5.6 million. Finally, the “decentralized global group of passionate developers” Fuel Labs, which develops protocols that can be added to Ethereum, received financial support of up to $1.9 million.

In short, since the start of the year, more than C$1.2 billion has already been injected into crypto-related start-ups and scale-ups. And the trend should not be reversed anytime soon…

The year 2021 marks a famous vintage for blockchain start-ups. Funding rounds are exploding the counters all over the world.

“A year that has already broken all records”, mentions the business analysis company CB insights in its new quarterly report The state of the blockchain. The global financing of start-ups active in blockchain and/or cryptocurrencies continued to rise (+384% compared to 2020) to reach new heights: the equivalent of 19 billion dollars (B$) Canadian since January.

A phenomenon that has not stopped at Canada’s borders. In the past three months alone, growing businesses have seen an influx of nearly $645 million, ten times more than in the previous quarter.

These include Vancouver-based Dapper Labs, made famous in late 2017 for its CryptoKitties (yes yes, digital kittens to raise, collect or sell), but which rose to the major league of the crypto industry with the NBA Top Shot (great moments of basketball players immortalized as NFTs on the blockchain).

With 220 employees and valued at $9.5 billion, the unicorn Dapper Labs thus achieved last September a mega-round of more than $300 millionthe sum of which will be used, among other things, to further democratize digital collectibles.

A month earlier, another major player in the bitcoin ecosystem had also led a mega-round of around $261 millionthe Blockstream company headquartered in Victoria, British Columbia.

Founded in 2014 with a mission to “build the financial infrastructure of the future” by following open innovation, the company has established itself as a leader in blockchain technologies and research state-of-the-art in cryptography and distributed systems. This is a new unicorn, whose value now flirts with $4 billion.

It must be said that with twelve new unicorns on a global scale over the period observed, this “entrepreneurial birth rate” has never been so high. That being said, the herd remains very American, with 15 of the 31 unicorns listed this year.

Another notable fact, while these are the cryptocurrency attracted the most funding of any other activity category this year, Canada has no funding in that particular area.

On the international venture capital scene, Canada stands out thanks to its dynamism compared to the rest of the world with approximately 10% of financing during the quarter observed, while operations represent only 2% of global volumes. (286 deals). Much larger, Europe accounts for 15% of funding, while Asia accounts for 20%. But it is the United States that largely dominates (50%).

To conclude the quarterly top five of funding in Canada, to a significantly lesser extent than their counterparts, let us note, first, the company Figment, a Toronto-based provider of infrastructure for the decentralized web, which has collected for $62 million. Then there is Horizon Blockchain Games, another Toronto company, which as its name suggests creates crypto games and tools to help others do the same, the sum obtained amounts to 5.6 M $. Finally, the “decentralized global group of passionate developers” Fuel Labs, which develops protocols that piggyback on Ethereum, received financial support of up to $1.9 million.

In short, since the start of the year, more than C$1.2 billion has already been injected into crypto-related start-ups and scale-ups. And the trend should not be reversed anytime soon…

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Record: $1.2 billion invested in Canadian crypto businesses


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