Venture capitalists are pouring money into cryptocurrency-related companies at a faster clip in years. In the first quarter, 129 startups focusing on the digital technology known as blockchain raised about $2.6 billion, according to CB Insights.
That’s more than in all of 2020, when they attracted $2.3 billion 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 currency.