As VC valuations reset, crypto keeps climbing

On Apr 22, 2022

Blockchain startups are showing immunity to a reset in valuation expectations that has taken over much of the venture capital universe, as well as a sell-off in cryptocurrencies.

So far this year, late-stage post-money valuations for VC-backed cryptocurrency and blockchain companies have climbed on average 91%, to $3.95 billion, according to PitchBook data. Meanwhile, average global late-stage VC valuations have fallen 14%, to $697.6 million.

The valuation growth is surprising given declines in major cryptocurrencies, which have historically been a leading indicator of VC interest in blockchain tech. The stock price of Coinbase, one of the few publicly traded crypto companies, has dropped 45% this year.

To be sure, the data only reflects startups that have successfully raised rounds in which the valuation is known. And many of the highest valuations in crypto rounds this year—including FTX, Dunamu and Fireblocks—were recorded January, when the reset in valuations was in the early stages.

“I see a bit of pullback for growth blockchain deals,” said Pantera Capital partner Paul Veradittakit.

Still, there has been no shortage of headline-grabbing rounds recently:

Indian crypto trading company CoinDCX was valued at more than $2 billion after raising $135 million.
Game creator The Sandbox is reportedly seeking a $400 million at a $4 billion valuation.
Crypto payment platform Moonpay raised $555 million at a $3.4 billion valuation.

Those deals are piling onto a heap of capital for the sector: Investors have put nearly $12.5 billion into VC-backed cryptocurrency and blockchain companies globally this year, outpacing last year’s total haul of $30.7 billion, according to PitchBook data.