Crypto firms got more funding last quarter than in all of 2020

Venture capitalists are pouring money into cryptocurrency-related companies at the fastest clip in years.

In the first quarter, 129 startups focusing on the digital technology known as blockchain raised about $2.6bn, according to CB Insights. That’s more than in all of 2020, when they attracted $2.3bn in 341 deals, according to the data analysis company.

The increase was fueled by several large rounds for startups including crypto lender BlockFi, game-maker Dapper Labs and crypto wallet provider Blockchain.com.

The funding surge is happening as Bitcoin hits record highs, and with companies such as Tesla diving into the largest digital currency.

Coinbase Global, the largest US crypto exchange, is planning a direct listing, which is likely to fatten the purses of many early investors – and encourage more venture capitalists to plunge into the sector.