Venture capital investments in blockchain and crypto have grown in Latin America


Even though cryptocurrencies are languishing this year after a bull market in 2021, that is not stopping investors from all parts of the world from pouring capital into blockchain and crypto projects. Take Latin America, for example.

LAVCA, the Association for Private Capital Investment in Latin America, recently created a new report highlighting the growth of venture capital investments in crypto-related businesses in 2021. The report showed a tripling of interest in these businesses from the previous year, totaling $15.7 billion.

Businesses involved under the crypto umbrella, including decentralized finance and blockchain, have grown exponentially compared to other industries. According to the report’s findings, investments reached $653 million in 2021, which is ten times the growth accumulated in 2020.

The report also identified the companies that invest the bulk of capital in these crypto-related investments, with Brazil and Mexico leading the way in 2021 in terms of dollars invested, which is not surprising given their economies. larger than the rest of the countries. However, looking at pure year-over-year growth, Argentina and Chile saw the strongest growth.

Growth concentrated in a few companies

While investments were higher overall in 2021, this growth was concentrated in just a few companies. It’s similar to the United States, where the tech sector, big players like Apple and Microsoft, are capturing a substantial share of the market.

Bitcoin market, one of the largest cryptocurrency exchanges in the region, recorded an allocation of $290 million over three funding rounds,” noted a report from “bitso, a Mexico-based cryptocurrency platform, received $250 million in investments. The other two big platforms that VCs invested in were Ripioan Argentinian exchange which received $50 million in a funding round led by DCG, and Lemon Cash, another Argentinian exchange, with $17.3 million.

Of course, since the crypto sector is still relatively new, more companies should appear. This opens up more opportunities for institutional investors to look to Latin America for diversified crypto exposure.

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