The crypto market may be bearish at the moment, but interest in crypto companies is on the rise. Data shows that in Q2 of 2021, venture capital flows into crypto firms hit $14 billion. This is a significant increase from the $600 million that went into this market in Q2 of 2020.
The latest beneficiary of venture capital flows into crypto is Amber Group. This is a Coinbase-backed crypto financial services company. The firm has received $100 million in its latest round of funding. This now gives it a valuation of $1 billion.
The latest funding round attracted some big names in the venture capital space. Some of the high-profile venture capitalists that took part in this round of funding include Investment Bank China Renaissance and Tiger Global Management. Coinbase also took part in this round of funding.
The growing interest in crypto-related firms is linked to the rising crypto prices over the past year. This has led to an increase in institutional uptake of crypto, and the integration of cryptos into corporate payment systems.
Some of the big players that have integrated crypto into their systems include Tesla and Square. Though Tesla discontinued Bitcoin usage for environmental reasons, Elon Musk clarified that the company still held on to its crypto stash.
The institutional uptake of crypto is what has drawn so much venture capital interest in Amber Group. The company sells crypto products, including trading algorithms to institutions. According to its CEO, Michael Wu, Amber aims to give customers the same level of service that they enjoy in private banking.