Golden Observation丨In-depth study of DeFi venture capital: 36 projects raised 500 million US dollars

Golden Finance Blockchain News, September 8     The boom in decentralized finance has not retreated, showing signs of recovery after a brief period of market volatility. Taking the total lock-up indicator as an example, when this article was written, according to DeBank data, the total lock-up volume of DeFi was approaching the $9.5 billion mark again, and the top three DeFi protocols were: Uniswap ($1.72 billion), Aave ($1.37 billion) billion) and Maker ($1.27 billion).

Not only that, but another little-known indicator—the total financing amount of DeFi projects—also deserves our attention. Recently, this indicator hit a new milestone: $500 million. Specifically, by analyzing the financing data of 34 decentralized financial projects/protocols listed on the DeFi Pluse platform, it was found that they have raised more than $500 million in funds from more than 100 venture capital funds.

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If 2017 was the craziest year for Initial Coin Offerings (ICO), then 2020 will definitely It belongs to the decentralized financial industry.

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In 2017, as a large number of retail investors poured into the initial coin offering market, the funds raised through token sales accounted for more than half of the total financing amount of the entire encryption industry in that year, and the three largest financing scales were: Bancor , Kyber and Loopring.

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However, since 2018, venture capital institutions have begun to enter the market, and their role in the encryption industry has become more and more important. Many encryption projects, including DeFi, have gradually left investment opportunities to institutional investors instead of to retail investors.

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In fact, in most cases, the financing model adopted by decentralized finance projects is also different from traditional initial coin offerings. In the former, the right to sell with a low limit is reserved only for a limited number of investors. Of the crypto companies analyzed this time, only four have launched token sales since 2017: Ren, Metronome, PieDAO, and bZx. Aside from these isolated cases, from 2018 onwards almost all funding deals were done through private equity and/or token sales to VC funds.

But it is worth mentioning that although the total annual financing amount of encryption projects has decreased since the initial coin offering boom in 2017, the scale of financing transactions for decentralized financial encryption projects led by venture capital funds has continued to increase:

If evaluated according to the financing scale of decentralized financial projects/agreement, the projects/agreement with the most financing include:

1. Bancor - $153 million (token sale, June 2017)

2. Maker - $61.5 million (venture capital)

3. Kyber - $52 million (token sale, September 2017)

4. Loopring $45 million (token sale, August 2017)

5. Compound - $33.2 million (VC investment)

Among them, Maker and Compound are the two decentralized financial projects that have received the most support from venture capital companies, and they are also the two decentralized financial platforms for lending with the highest total locked positions. There is no doubt that the lending decentralized financial agreement is the core business of the entire decentralized financial field, and has therefore received the attention of venture capital institutions. In the past two years, it has been the investment area that these institutional investors have focused on.

If evaluated in terms of investment transaction volume, the most active-ethexc venture capital funds in the decentralized finance industry are: Polychain Capital, A16z, Paradigm Capital, 1Confirmation, Bain Capital Ventures, Coinbase Ventures, and KR1—these venture capital institutions usually like to Centralized financial projects conduct seed round investment, which also opens up the way for other funds to participate in follow-up investment.

Finally, it should be noted that this analysis only focuses on the decentralized financial projects listed on DeFi Pluse, but there are many decentralized financial projects that are not listed on DeFi Pluse, but these projects also gain risk Investment by investment institutions. Also, in most cases, some financing data related to seed rounds and private token sales are not publicly available, so some data may be inaccurate or incomplete.

Part of this article is compiled from decrypto

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