Blockchain start-ups worldwide raised a record £3.2 billion in funding during Q2 2021, in spite of the significant decline the cryptocurrency market has been experiencing since mid-April.
This data, collected by analytics firm CB Insights in its ‘State of Fintech‘ report, represents a 50% increase over last quarter and a ninefold increase compared to the same time last year.
The global fintech industry also reached new heights in this quarter, with £22.4 billion being funded into the sector by venture capital firms.
“Across 657 deals, global VC-backed fintech companies raised a record $30.8 billion (£22.4bn), shattering last quarter’s funding record by 30%. This impressive funding growth was accompanied by a modest 2% deal growth quarter-over-quarter and a 29% increase year-over-year,” the report reads.
The largest funding round in this period went to Circle, a US-based stablecoin company that raised a then-record breaking £320 million in May. Crypto derivatives exchange FTX has since surpassed Circle in receiving the largest funding round for a crypto firm, raising an eyewatering £654m in July.
Hardware wallet developer Ledger came second in terms of funding, acquiring £276m in June. Other notable funding rounds included £218m in April for custody firm Paxos, Block.one’s £218m haul in May for its new exchange; and Mexico City-based exchange Bitso’s £181m round in May.